Loans & Credit

Different lending needs call for different products. SACCO360 lets you define as many loan products as your cooperative requires — each with its own interest rate, maximum term, eligibility multiplier, repayment method, and GL mapping. Typical setups include a Normal or Development Loan (general-purpose, standard terms), an Emergency Loan (smaller amount, fast-tracked approval, shorter term), a School Fees Loan (timed to term dates with a grace period), Asset Finance (secured against the purchased vehicle or equipment), and a Business or Enterprise Loan (higher limits for SME members with trading history). Add new products as needs arise — each one carries its own rules, so changing one never affects another.

Loan officers raise applications against any of your configured loan products, capturing the amount, term, and purpose. The system applies the product's rules — rate, maximum amount, repayment method — and builds the repayment schedule so both staff and member see the commitment up front.

Applications are screened against the cooperative's rules — membership standing, savings history, existing exposure, and more — so ineligible requests are caught early rather than after review.

Attach member guarantors and pledge collateral, including savings held as security. Liens on savings are tracked through their lifecycle so secured funds cannot be withdrawn while they back a loan.

Small loans can auto-approve; larger ones route to the credit committee's pending queue for review. Approvers can approve, reject, or query, and only an approved loan can be disbursed.

On disbursement, funds are released to the member and the accounting entries — including any deductions such as fees or security — post automatically, keeping the loan book and the ledger aligned.

Record repayments and watch them allocate correctly across principal, interest, and charges. Arrears are tracked automatically, with dunning and the tools to restructure or write off when recovery requires it.