Rent Faida/Landlord Product/Jenga Kwako
This product is designed to cater for the rental housing financial value chain. It provides a collection account to the proprietor as well as the credit facility for new construction and units improvement based on the rental income. The product will equally help the agent to reduce financial pressure of advancing the landlords and renovation challenges.
PURPOSE.
The product will cater for Landlords/ladies who:
- Already have existing rental income and would wish to do renovation.
- Have built up to a certain level and would wish to construct additional units.
- Would like to purchase ready rental units
- Would like to do property improvement or additional features in a building like; solar installation, drilling of borehole, buy water tanks e.t.c.
FEATURES
Requirements
- Must be a member of Tramom Sacco.
- Duly filed loan application form.
- A copy of the signed Tripartite Agreement between the Sacco, Agent and the member.
- Rent must pass through the Sacco for at least 3 months.
- One must provide rental statements for the last 6 months.
- Must provide originals documents of the legal ownership documents e.g Lease certificate, allotment letters, share certificates, Title Deed, a duly executed sale agreement/prove of ownership.
- Copies of personal identification documents.
- Business call report taken by the loan officer including the photos of the building.
- For amount below 500k simple deposit of the original documents are acceptable.
- For amount between 5001k-1m, Informal charge shall be prepared by the layer approved by the Sacco.
- Valuation of the property must be done for an amount above 500k
- Summary of the bill of quantities of the project to be undertaken if any.
- Comprehensive insurance to be placed over the building.
- Must be within the X3 deposit multiplier.
Terms of agreement
- Commit up to 50% of the rental income to loan repayment.
- Payments will be channeled to Tramom Sacco Fosa account by the agency on a monthly basis as stipulated in the tripartite agreement.
Loan Term 48 months
- Interest rate: 15% on a reducing balance.
- Processing fee: 1% of the advanced amount one off.
- Credit Life Insurance fee: 1% of the advance amount one off.