Asset Financing & Development Loan

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Asset Financing & Development Loan

Security - Title Deed

The loan product is intended to benefit members who wish to acquire and develop properties. The loan shall be secured by the title of the property being acquired and/or developed.

The conditions for granting the loan shall be:

The Vendor or Seller and the property must meet the approval criteria set by HACO SACCO.
The member must enter into a legally binding agreement with the Vendor and the terms thereof must meet all the requirement set by HACO SACCO.
The SACCO may if it deems it necessary subject the property to a professional valuation in order to determine the adequacy of the security of the loan a member intends to take.
The SACCO shall simultaneous with the transfer of the property to the Member Register a Charge of the property and shall retain the original title deed until the loan is fully repaid.
The Charging of the property shall be undertaken by an Advocate instructed by HACO SACCO.
Haco Sacco pay the Vendor directly the purchase price or portion thereof subject to financing by the proceed of the loan.
The member shall bear all costs related to the transaction including legal fees to the SACCO’S Advocate. However, the costs may be part of the loan advanced to the member.
The loan product can be availed to members to develop such property if they have repaid the initial loan for financing the purchase price and /or have cleared an amount that is more than 80% of the value of the property at the time of applying for the loan for development.
The Sacco will advance Asset development loans to members for property already owned duly registered in the member’s name using the said property as security for the loan.
For Asset development loans, the loan will be reviewed and approved upon a member providing duly approved construction permits.

If the Security for the loan is inclusive of the value of the property after construction, the loan shall be approved and disbursed in whole.

Entitlement

Security – Car Logbook

This facility enables members to purchase private quality cars through co-ownership with the Sacco while using the same asset as security for the financing. This product will be offered in partnership with reputable dealers of new and second-hand imported cars.