New Vision SACCO in a profit margin of sh700m
The New Vision Staff Cooperative SACCO, Savings and Credit Scheme Limited known as Vision Coop has made a profit of sh700m, which is slightly above the previous profits, The Drone Media has established.
This was revealed to members in a meeting chaired by Paul Busharizi, the current chairman. According to the source that told The Drone Media, Busharizi was happy to report a profit of 700M up from 626M made the previous
year and the savings were also up to 4.64b from 4.05b the previous year and a total of 4.97b
was lent out.
The chairman also informed the AGM that land investment is still on the cards and any member who know anyone with 20acres or more ,unencumbered with 20km radius from Kampala should let the Coop executive and the investment committee know.
The Vision Coop proposed changes to the lending policy and the current loan products currently in the policy include:
-Personal Improvement Loan
-Hire purchase loans
Proposal;
Personal Improvement loans
Hire purchase loans
Land loans
LOAN SIZE
Currently in the policy;
The standard loan the SACCO can extend to the borrower is two (2) times the savings
At the discretion of the Coop executive/Loan committee, the SACCO may extend three (3) times
the savings.
Proposal;
The maximum loan size that can be extended to any borrowers shall be determined in accordance with
the applicant’s patronage of the SACCO’s activities, which may be determined by: –
(i) The amount of savings deposits/shares held and the saving pattern
(ii) The borrowing history (loan repayment track record) of the applicant
(iii) The circumstances of the loan being applied for.
Given the above, the standard loan the SACCO can extend to the borrower is two (2) times the
savings value to freelancers, sales executives and part-time members, as well as for all first time
loans, and three (3) times the savings to staff members.
The maximum loan amount the SACCO can extend is Ugx. 121,827,411 only.
The SACCO can extend loan top-ups after repayment of at least 75% of the principal loan
granted.
Loans with terms that differ from the above terms can be awarded at the discretion of the
executive and credit committees.
LOAN PERIOD
Currently in the policy;
the loan period shall be a maximum of 48 months. However different loan applicants (sales
persons, freelancers, contract staff etc. will be extended different loan periods (subject to the
above maximum) as shall have been recommended by the committee and approved by the
members. The SACCO may also offer different loan periods in accordance with the terms and
conditions set and agreed upon by the Loan committee/Coop executive.
Proposal;
To enable many members access the society’s credit facilities particularly so, at the time when funds are
scarce, the loan period shall be a maximum of 36 months. However, each loan applicant will be
extended different loan periods (subject to the above maximum) based on their employment contact
with Vision Group. The SACCO may also offer different loan periods, not exceeding 48 months, in
accordance with the terms and conditions set and agreed upon on discretion by the Loan
committee/Coop executive.
COLLATERAL/SECURITY FOR THE LOAN
Currently in the policy;
All loans extended by THE NEW VISION STAFF COOPERATIVE, SAVINGS AND CREDIT SCHEME
LIMITED shall be secured by Salary but the loan committee in some circumstances may require
the loan applicant to furnish the Coop with collateral on the loan. Acceptable loan securities
shall include land, SACCO’S share certificates, and savings deposits.
In addition to the securities and their documentation in the loan agreement, the SACCO, may
take other forms of legal documents over the loan securities or collateral e.g. sales agreement in
an effort and secure timely loan repayments from the borrowers.
Proposal;
• All Personal improvement loans extended by THE NEW VISION STAFF COOPERATIVE,
SAVINGS AND CREDIT SCHEME LIMITED shall be secured by Savings deposits and/or shares, all
motor bicycle loans under the Hire purchase agreement for newspaper distributers by a written
recommendation from the Circulation office, and all SACCO Land loans by land titles.
LOAN GUARANTORS
Currently in the policy;
Everyone loan applicant must provide 2 guarantors. The person proposed to be the borrower’s
guarantors must:
Be active members of the SACCO
Have a good track record in regard to repaying their own loans
Not be guarantors of another outstanding loan which is in default.
Not be a spouse to the borrower
Have capacity to repay the loan
Have a close relationship with the borrower and willing /ready to pay in the event of the
borrower failing to repay the loan.
Be a sound mind and adults.
In the event of the borrower failing to honor his/her /its loan obligations, the guarantor must:
Bring pressure to bear on the borrower to repay the loan including the SACCO to apprehend
the defaulter.
Repay the loan
Forfeit his/ her share capital as well as savings deposits in the society to complete the
repayment of the loan.
Proposal;
Everyone loan applicant must provide 2 guarantors. The person proposed to be the borrower’s
guarantors must:
Be active members of the SACCO
Have a good track record in regard to repaying their own loans
Not be guarantors of another outstanding loan which is in default.
Not be a spouse to the borrower
Have a close relationship with the borrower.
Be a sound mind and adults.
In the event of the borrower failing to honor his/her /its loan obligations, the guarantor must:
Bring pressure to bear on the borrower to repay the loan including the SACCO to apprehend
the defaulter.
Repay the loan
Forfeit his/ her share capital as well as savings deposits in the society to complete the
repayment of the loan.
SECURING LOAN SECURITY
Currently in the policy;
All collateral provided for the loan must be secured by;
Signing of a loan agreement and sales agreement, which transfer ownership of the security /
collateral to the SACCO.
Deposition of Land Titles or any relevant registration documents (used as the loan securities/
collateral) with the SACCO by the borrower.
Proposal;
Land titles for the SACCO Land acquired by loan shall only be handed over to the borrower and transferred to their names after full payment of the loan amount. These titles shall be kept in
the custody of the SACCO until such a time.