Terms & Conditions

Terms and Conditions for Online SACCO Membership and Services

These Terms and Conditions (“Terms”) govern the relationship between SIGNTECH SACCO (“the SACCO”, “we”, “our”, “us”) and any individual (“member”, “you”, “your”) who registers, saves, or applies for loans through our online platform. By registering as a member, you agree to abide by these Terms.

1. Membership

1.1 Membership is open to individuals who meet the SACCO’s eligibility criteria and complete self-registration through our online platform.

1.2 All information provided during registration must be accurate, truthful, and up to date.

1.3 The SACCO reserves the right to verify member information and decline or terminate membership if false details are discovered.

1.4 The telephone number registered during account creation will be used for all identification and communication purposes. If the number is lost, the member must immediately report it and apply for a change by presenting a valid national ID and a police abstract.

2. Savings

2.1 Members can make savings contributions through the online platform using approved payment methods (e.g., mpesa banking, cash savings).

2.2 Members are eligible to withdraw up to 40% of their total savings once per year, on 15th December, provided they have been saving consecutively not less than Ksh. 500 every month, do not have an active loan, and have not committed all their savings to guarantee another member’s loan.

2.3 The remaining savings balance (minimum 60%) shall remain in the account to continue growing and to support loan eligibility.

2.4 Savings contributions outside this provision are non-withdrawable for a minimum period of 24 months, except as provided under other withdrawal policies.

2.5 Members must maintain a minimum savings balance of Ksh. 3,000 to remain active.

2.6 In the event of a member’s exit within the first 24 months of consecutive savings, a deduction of 5% of their total savings shall apply. After 24 months, members may withdraw their full savings without penalty, subject to loan or guarantor commitments.

3. Loan Applications

3.1 Only active members with the required minimum savings are eligible to apply for loans. The minimum savings required to apply for a loan is Ksh. 3,000.

3.2 Loan approval is subject to credit assessment, repayment capacity, and compliance with SACCO policies.

3.3 Members are eligible to borrow up to three (3) times their savings, provided they have a guarantor.

3.4 Loan Interest Rates:

• Loans with a term of 1–5 months will attract an interest of 6% per Month.
• Loans with a term of 6 months and above will attract an interest of 12% per annum.

3.5 Minimum amount for long-term loans: Loans with a term of 6 months and above must be a minimum of Ksh. 20,000. Applications for long-term loans below this amount will not be accepted.

3.6 The SACCO reserves the right to decline a loan application without providing detailed reasons.

Note: These eligibility rules (term, minimum amount and interest rate) are enforced automatically during application submission and evaluation.

4. Loan Repayment

4.1 Members must repay loans as per the agreed repayment schedule.

4.2 Late or missed repayments will attract penalties and may affect eligibility for future loans.

4.3 The SACCO may deduct outstanding amounts directly from member savings or guarantor savings where applicable.

4.4 Defaulting members may be reported to relevant Credit Reference Bureaus (CRBs) in accordance with applicable laws.

5. Guarantor Obligations

5.1 Members applying for loans must provide at least one guarantor, unless otherwise stated by the SACCO.

5.2 In case of default, the guarantor(s) shall be held responsible for repayment of the outstanding loan.

5.3 Guarantors’ savings may be used to recover unpaid balances of the borrower.

6. Digital Platform Usage

6.1 Members must keep their login credentials secure and confidential. The SACCO will not be liable for losses arising from unauthorized access due to negligence.

6.2 Transactions initiated with valid login details will be deemed authorized by the member.

6.3 The SACCO reserves the right to suspend accounts suspected of fraudulent or illegal activity.

7. Fees and Charges

7.1 Applicable fees are as follows:

7.2 The SACCO reserves the right to revise charges with prior notice to members.

8. Dividends

8.1 A member becomes eligible for dividends after maintaining continuous membership and savings for at least 10 months.

8.2 Dividends will be distributed on 1st March each year.

8.3 The amount of dividends will be determined by:

• The number of shares a member holds.
• The dividend rate, declared annually based on the SACCO’s profit.

9. Privacy and Data Protection

9.1 The SACCO will collect, store, and process member data in accordance with the Kenya Data Protection Act, 2019.

9.2 Member information will not be shared with third parties except as required by law or for service provision (e.g., credit checks).

9.3 Member data will be retained for five (5) years after exit, solely for the benefit of the member and their dependants.

10. Member Responsibilities

10.1 Provide accurate information during registration and loan applications.

10.2 Ensure timely repayment of loans and contributions.

10.3 Use the SACCO platform lawfully and responsibly.

11. Member Exit

11.1 A member may voluntarily terminate their membership by providing written notice and settling all outstanding obligations.

11.2 Refund of savings will be processed in accordance with Section 2.6 of this policy, subject to applicable deductions, loan balances, or guarantor obligations.

11.3 Exit does not absolve members from pending liabilities.

12. Dispute Resolution

12.1 Any disputes between members and the SACCO will be resolved amicably in the first instance.

12.2 Where resolution fails, disputes may be referred to the SACCO Tribunal in accordance with Kenyan law.

13. Amendments

13.1 The SACCO reserves the right to amend these Terms & Conditions at any time.

13.2 Members will be notified of significant changes via the online platform, SMS, or email.

14. Governing Law

These Terms are governed by the Laws of Kenya, including the Cooperative Societies Act, SACCO Societies Act, and other applicable regulations.

← Back to Home