Telepost Sacco has outlined the full terms and conditions governing the use of PesaTele mobile loans. The facility provides instant access to short term credit for members who have contributed shares consistently for at least six months. Below is a detailed breakdown of eligibility, loan types, interest charges, limits, repayment rules and penalties.
Eligibility for PesaTele Mobile Loans
To qualify for any PesaTele mobile loan product, a member must:
- Be registered with Telepost Sacco.
- Have contributed shares consistently for at least six months.
- Hold an active FOSA account.
- Use either *882# or the PesaTele mobile app for application.
Members can apply for several loan types including Mobile Loan Advance, Overdrafts, PesaTele Loan, Salary Advance and Reloaded Plus.
How to Apply for a PesaTele Mobile Loan
Applications are done through USSD or the app. The steps include:
- Dial *882# or open the PesaTele App.
- Enter your PesaTele PIN.
- Select Loan.
- Choose the loan product.
- Select the repayment duration.
- Enter the preferred amount.
- Add guarantors for Salary Advance or Reloaded Plus.
- Submit the application.
Once approved, the loan is deposited directly into the member’s FOSA account.
Loan Limits and Growth Rates
- A member cannot borrow more than their total deposits when applying for a Mobile Loan Advance.
- Mobile Loan Advance grows by 5,000 shillings per month up to:
- 35,000 shillings for BOSA members.
- 45,000 shillings for FOSA members.
- Other loan types depend on the member’s salary.
Interest Charges per Product
Different loan products attract different monthly interest rates:
- Mobile Loan Advance: 8 percent per month
- Overdrafts: 7 percent per month
- PesaTele Loan: 5 percent per month
- Salary Advance: 4 percent per month
- Reloaded Plus: 3 percent per month
Interest is added to the principal at disbursement.
Repayment Periods
- Mobile Loan Advance: 1 or 2 months with a 7 day grace period
- Overdrafts: Recovered monthly on salary posting
- PesaTele Loan: Repaid within 1 to 3 months depending on approval
- Salary Advance: Monthly recovery upon salary posting
- Reloaded Plus: Up to 12 months
For Mobile Loan Advance, non FOSA members have recovery done through payroll. FOSA members have deductions upon salary posting.
Penalties for Default
- Mobile Loan Advance defaulters pay one month penalty of 10 percent.
- Accrued interest continues for up to 6 months.
- Defaulters are blocked from PesaTele borrowing until payment is cleared.
- After clearance, the member returns to the minimum limit of 5,000 shillings.
- No recovery from share deposits. Defaulted loan balances remain on the member statement.
Other Key Terms
Loan Approval
Telepost Sacco is not required to provide reasons for declining or approving any application.
Default Rules
There is no blacklisting once a defaulted PesaTele loan is fully repaid. Members regain access starting from the lowest limit.
Disclosure of Information
Members consent to Telepost Sacco sharing personal and credit information with:
- Law enforcement and regulatory bodies
- Service providers and partner companies
- Credit Reference Bureaus
Credit referencing fees may apply.
Limitation of Liability
Telepost Sacco is not liable for indirect or consequential losses arising from use of the mobile loan service.
Assignments
Telepost Sacco may assign its rights or obligations under these terms to third parties without further consent.
Validity
If any clause in the terms is ruled invalid, the remaining sections remain enforceable.
