Borrowing With Shared Protection
Loan security helps the SACCO lend responsibly while protecting member deposits, guarantors, and the wider community.
- Member deposits and guarantors remain central to loan security.
- Additional collateral may be required for higher loan amounts.
- All collateral is reviewed under SACCO credit terms.
How loan security works
For many facilities, security may be provided through member deposits, qualified guarantors, or approved collateral. If a borrower defaults, the SACCO follows its recovery process and may involve guarantors or the pledged security as provided in the loan agreement.
Where the requested facility is above the amount covered by available deposits and guarantors, Mashirikiano SACCO may request extra collateral before disbursement. The aim is to keep lending fair, transparent, and sustainable for all members.
Title Deeds
Land title documents may be considered as collateral where the property can be verified, valued, and legally charged. Related valuation and registration costs are handled by the borrower.
Member Deposits
A member may secure borrowing using available deposits or savings. Funds used as security may be restricted until the loan obligation is cleared.
Vehicle Logbooks
Vehicle ownership documents can support a loan application after verification. Approval depends on the vehicle details and the SACCO's credit assessment.
Guarantorship
Eligible SACCO members may guarantee another member's loan. Guarantors should understand their responsibility before signing because they may be called upon if repayment fails.
Before you pledge security
Speak to the credit team so the right security option is matched to your loan amount, repayment ability, and available documents. Terms may vary by facility, member history, and current SACCO policy.