Overdraft on salary account
The facility will be available to the salary account holders whose salary has been processed through FOSA for at least three (3) months.
The SACCO will allow overdraft facility on request from customers in the prescribed format on anticipation of the salary. Only 75% of such salary expected may be allowed.
The advance will be guaranteed by the customer expected salary
The advance recovery will be a one off recovery once the salary is processed
Cheque Deposit Overdraft.
The SACCO will allow overdraft facility to its customers in good standing (Active account for over 6 months) on deposit of a cheque (s) (ENC – Effects Not cleared mode).
- The cheques must have been drawn by a corporate entity.
- The cheques must not be postdated
- Only 50% of the cheque sum may be drawn
- Due diligence on the “goodness” of the cheque must be made by FOSA Accountant
The SACCO will allow a negotiated overdraft facility at a commission on application based on the general savings/salary account activities. The following conditions will be fulfilled in granting the facility:
- The account must be over 12 months in active mode.
- The average transactions in 12 months must be able to sustain the overdraft repayment.
- Such an overdraft will not exceed 12 (twelve) months in repayment.
Utility bills advance
The facility will be available to the all FOSA account holder except holders of children accounts.
The loan will be charged interest per month.
The advance will be recoverable within 1 (One) month
The loan will be guaranteed by FOSA account holder and members of the SACCO.
A processing fee of amount approved will be charged and recovered on disbursement.
The loan recovery will be done either through a standing order against the customer account (for salaried), check off system or Standing order through a commercial bank.