Mwalimu National Sacco: Membership Requirements, Savings, Loan Options And Interest

Mwalimu National Sacco is a financial cooperative that primarily serves teachers across all levels from primary to tertiary, and extends membership to TSC secretariat staff, as well as spouses and children of members who may not be formally employed.

It was established in 1974 with just nine members. The Sacco has grown significantly, now boasting over 123,000 members and 18 branches. Its head office is located at Mwalimu Towers on Mara Road, Upper Hill, Nairobi.

The Sacco offers a range of services designed to meet the financial needs of its members.

For example, Front Office Services Activities (FOSA) provide banking services, including loans, salary advances, and instant credits. Business loan products include asset financing, insurance premium financing, mortgage financing, and collateral-based loans.

Back Office Services Activities (BOSA) enable members to access loans against their deposits.

In addition to financial services, Mwalimu National Sacco provides welfare benefits such as risk funds, last expense benefits, and burial benevolent funds, ensuring holistic support for its members.

According to the Sacco Societies Regulatory Authority (SASRA) 2023 report, the Sacco ranked first in asset base, holding assets worth Ksh 66.43 billion.

The Sacco requires a Risk Fund, which is a compulsory insurance scheme for all Sacco members, with each member contributing Ksh400 monthly.

The fund is used to pay off any outstanding loans of a deceased member, settle the last expense benefit, and double the shares payable to the member’s beneficiary or nominee.

Mwalimu National Sacco Membership Categories

Class A – Membership:
Eligible individuals include:

Employees of the Teachers Service Commission (TSC) in Post Primary, TVET institutions, TSC Secretariat, Mwalimu Sacco staff, and employees of any Mwalimu National Sacco Ltd subsidiary.
TSC primary school employees with academic qualifications at diploma level and above.
Lecturers in public and private universities.
Spouses of members and members’ children over 18 years of age who are employed.
Former employees of TSC and government-related primary, post-primary, and TVET education institutions who are now employed in the private or public sector or engaged in private business.
TSC primary school employees with qualifications below diploma may be admitted at the Board’s discretion.
Teachers with diploma-level qualifications or above, employed in education-related institutions, including those registered by TSC and employed by school Boards of Management (BOM).
Members working in government ministries, departments, or other institutions with existing checkoff facilities with the Sacco.
Students previously sponsored by the Society under the Child hope Foundation, over 18 years old and in formal employment.

Class B – Membership:
Eligible individuals include:

Students pursuing education-related diplomas or degrees in recognized technical colleges and universities.
Members who have withdrawn their deposits and have not yet transferred their shares to another member.
Members joining by share capital.

This structure allows Mwalimu National Sacco to serve both active education professionals and students pursuing careers in the education sector, as well as individuals connected to the teaching community.

How to Join Mwalimu National Sacco

Obtain the application form:
- Download it from the Mwalimu National Sacco website or collect it from any branch.
Gather the required documents:
- Ensure you have all necessary documents as specified for membership.
Submit your application:
- Submit your completed form and documents at any Mwalimu National branch or send them via courier to the headquarters at Mwalimu Towers, Upper Hill, Nairobi.

Loans And Interest Offered

Normal Loan

The Normal Loan is a short-term loan designed to help members meet their immediate financial needs. The loan carries an interest rate of 1% per month, equivalent to 12% per annum, calculated on a reducing balance. It is repayable over a maximum period of 48 months. The loan amount is limited to three times the member’s deposits, subject to the 1/3 salary rule. Only one normal loan can be active for a member at any given time.

School Fees Loan

The School Fees Loan is granted exclusively for education purposes. It carries an interest rate of 1% per month, calculated on a reducing balance. The loan is repayable over 24 months. Members can borrow up to five times their deposits, subject to the 1/3 salary rule. Only one school fees loan can be active for a member at any given time.

Super Loan

The Super Loan is a long-term loan intended for investment purposes. It carries an interest rate of 1.29% per month, equivalent to 15.5% per annum. The loan is repayable over 84 months. Members can borrow up to four times their deposits, subject to the 1/3 salary rule. The loan attracts a 0.5% processing fee. Only one Super Loan can be active for a member at any given time.

Also Read: Stima Sacco: Membership Requirements, Savings, Loan Options And Interest

Ufanisi Loan

The Ufanisi Loan is a long-term loan designed to help members with limited shares but sufficient salary gain access to additional credit by boosting their shares.

A portion of the loan applied is retained as deposits, enhancing the member’s balance multiplier.

Terms of the Product:

Loan Period: 120 months
Deposits Multiplier: 5
Interest Rate: 1.50% per month (18% per annum)
Share Boosting Fee: 10% (Managed by Mwalimu National Sacco; if a member boosts independently, they must wait six months before applying)
Members can use the loan to bridge or consolidate other loans.
The loan must be fully guaranteed.
Recovery is done at a monthly flat rate combining principal repayment with interest.

Requirements:

Must be an active member of the Sacco.
Salary must pass through the Sacco’s FOSA.
Loan accounts must be up to date with repayments.
Duly completed loan application form.
Copies of supporting documents, including an irrevocable instruction of no change of pay point until the loan is fully repaid.

Wezesha Loan

The Wezesha Loan is designed for new members of Mwalimu National Sacco, allowing them to access funds based on their ability as soon as their first savings deduction is processed. Only one-quarter of the loan amount applied will be retained in the member’s account as savings, and the loan must be fully guaranteed.

Terms and Conditions:

The product is exclusively for new members.
Interest rate is 1.13% per month (13.5% per annum).
The loan has a maximum repayment period of 72 months.
A 2% Wezesha processing fee is charged on the loan amount to be advanced.
The maximum loan amount is determined by the member’s repayment ability, provided the loan is fully guaranteed.
Members must meet the minimum qualifying period as per the Sacco by-laws.
Shares boosted through the loan will earn dividends on a pro-rata basis.

Also Read: List of SACCOs at Risk of Losing Billions After KUSCCO Heist

Development Loan

The Mwalimu National Sacco Development Loan is a medium-term loan designed for investment or development purposes. The loan carries an interest rate of 1.25% per month, equivalent to 15.5% per annum, calculated on a reducing balance. A processing fee of 0.5% is charged on the loan amount. The repayment period can extend up to 60 months. Members can borrow up to four times their deposits, subject to the 1/3 salary rule. Only one development loan can be active for a member at any given time.

Senior Saver Loan

The Senior Saver Loan is designed for senior savers whose deposits exceed their existing loans and who have not guaranteed other members. These members can use the difference to access additional loans, provided the total loan does not exceed 85% of their free deposits.

Terms of the Product: