CO-OP-A-MAJI Loan

Co-operative Bank lends money for water, sanitation and hygiene equipment, including solar pumps, solar water heating and installation using renewable energy. The wider offer also covers water tanks, connections, purification, boreholes, wastewater treatment and business growth in water and sanitation services.

• Solar water equipment: up to 100% financing to cover operating expenses or stock, with a flexible repayment period and no additional collateral (assets pledged as security) required.
• Water tanks and smart meters: up to 100% financing with flexible repayment period. Loans without pledged assets as security are available to clients fully banking with Co-operative Bank.
• Water connections: up to 100% financing to cover operating expenses, with flexible repayment period. Loans without pledged assets as security are for Co-operative Bank customers; the connection checklist also requires security.
• Exhauster trucks, which remove sewage, and water bowsers, which transport water: 80% financing with repayment up to 72 months. Additional working-capital financing is available, and no additional collateral (assets pledged as security) is required.

You repay the money borrowed to the bank. Where your offer expressly incorporates the bank’s general lending conditions, the offer letter sets the repayment amounts and dates, interest and fees. The bank can demand repayment at any time, including for facilities other than term loans; on a written demand for those other facilities, undrawn money is cancelled and outstanding money, interest and costs become due. Interest starts when money is paid out. Unless your offer states otherwise, it accrues daily, is charged monthly and compounds monthly if unpaid; late sums also attract the additional interest for late payment specified in your offer. Kenya-shilling lending uses the Central Bank’s monthly KESONIA benchmark plus an extra rate set for you by the bank, called the customer premium. Benchmark changes apply automatically, and the bank notifies you of premium changes.

For term loans paid out in stages under those conditions, request each payment in writing using the bank’s approved form, stating the date and amount and respecting any minimum or multiples in your offer. You cannot draw more money while a default remains unresolved to the bank’s satisfaction, or if the payment would cause a default. If the full loan has not been paid out by the final drawdown date in your offer letter—the deadline for receiving the loan funds—the bank can review your repayment instalments unless otherwise agreed before that date. Interest added to the loan balance or a changed calculation basis can also change repayment amounts and dates, with notice from the bank.

Under the same conditions, full early repayment of a term loan normally requires at least one month’s written notice, unless the offer says otherwise, plus accrued interest and other charges. The offer may specify a lawful prepayment fee; if it does not, the default fee is one month’s interest on the loan principal, payable only instead of that notice. For partial early repayment, all outstanding interest must first be paid; the bank allocates the payment unless the law or an agreement provides otherwise.

Appraisal, annual review and other fees are set out in the offer and total-cost-of-credit schedule. Where the incorporated conditions apply, you also bear the stated legal, valuation, tax and other expenses, including when funds are not drawn, and the bank can deduct fees and expenses from the loan or your accounts. An upfront interest component applies where specified in your total-cost-of-credit document.