We have looked at various banks accounts targeting Chama’s offered by different banks. ( insert links). We continue looking at the options Chama’s have when it comes to bank accounts, loans and other benefits. Today we look at the Chama Investment Account offered by Family Bank .
The account targets groups which wish to create wealth. For your group to qualify for the Chama Investment Account it should consist of at least 5 members but have a maximum of 35 who will collectively pool their resources together to buy assets, home or invest in a project of their choice.
The account targets both incorporated and informal groups. To open the account the bank requires a minimum deposit of Ksh 2,000. Your group must be registered and hold a certificate of registration.
For incorporated companies key documentation must be provided before an account is opened. These include a certificate of incorporation, memorandum and articles of association and Business PIN certificate. A company’s returns, list of directors, partnership mandate in addition to individual identification documents for signatories of the account.
Even chamas registered as self help groups or community based organizations can open the account since they have a place in lifting the economic status of its members. Such groups must submit their registration documents and identify their members and business activities to qualify.
Like investment accounts run by other banks, your group must save for at least six months before you can apply for a Chama loan. This account will also be used to appraise the customers for Chama loans. It is imperative upon members to use the flexible saving module under the product to maximize on the savings and hence tap on the increased resource base when taking the loans. Family Bank encourages members to do monthly deposits to make the account active and maximize for loans which are at three times the savings of a group.
The minimum loan you can apply for is Ksh. 500,000. However, smaller groups seeking amounts lower than the minimal the can opt for the Jenga Bizna Account which grants them lower amounts to a ceiling of Ksh 500,000 .The Chama loans are repayable within a maximum period of 48 months (4 years). Group Members can co-guarantee one another when borrowing under Chama Investment Account
The account is package with numerous benefits for members to help in nurturing and growing investments. Apart from accessing the Chama loans from the bank, the account has attractive interest rates and free internal Standing Orders to the Chama Account. Insurance services are also offered in addition to treasury services.
You can also attend Chama workshops held every three months where a relationship manager will be on hand to offer advice. Family Bank will also facilitate investment in treasury bills, bonds, commercial papers and shares. The bank also has a mobile banking facility, Pesa Pap, which makes members access the account easily.
This post was written by Martin Njuguna
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