Mwalimu Sacco, KMRC partner to offer low-cost mortgages

Mwalimu Sacco

Mwalimu Towers, the headquarter of Mwalimu National Sacco. The sacco has partnered with Kenya Mortgage Refinancing Company to give low-cost mortgages to its members.

Photo credit: File | Nation Media Group

Mwalimu National Sacco has partnered with the state-owned Kenya Mortgage Refinancing Company (KMRC) to give low-cost mortgages to its members.

The teachers-owned sacco on Thursday said its members will access a minimum mortgage of Sh500,000 and a maximum loan of Sh8 million to build houses.

The loans will be charged an annual interest of 9 per cent on a reducing balance.

The mortgage loan facility will assist members to acquire ready houses built across the country for a long-term loan facility repayable in up to 308 months, said Mwalimu Sacco, which has more than 120,000 members.

At the same time, the sacco unveiled an asset financing loan facility alongside an insurance premium financing to pay for insurance covers.

The asset financing loan will enable members to acquire personal assets.

Mwalimu National Sacco Chairman Joel Gachari said the deal will enable the sacco to serve as a one-stop shop where they will be able to acquire essential affordable housing mortgage loan products, buy personal assets, commercial businesses and get insurance premium financing.

“This is a milestone for the sacco membership and an ingredient for enabling our members to get an increased space for growth and expansion.” Mr Gachari said.

“The interest rates and the minimum amount for affordable housing loan products are comparatively low and will go a long way in opening the space for more members who could not have afforded the expensive mortgage products from other competitors in the housing market,” he added.