BACK OFFICE SERVICE ACTIVITY (BOSA)

Taqwa Sacco is the First Sharia Compliant financial institution in Kenya (est 1998). We believe in giving you and your family the opportunity to create Halal wealth. We achieve this by offering you the following products.

  • There are over 7,000 SACCOs in Kenya. Like Taqwa they are offering back office service (BOSA) which provides members the opportunity to save and take guaranteed loans.
  • Fo the last 20 years, Taqwa Sacco has been the only Shariah Compliant BOSA provider. To obtain a BOSA loan which can be as much as 3 times of your savings, a member needs to have saved consistently for a period of 12 months. In addition one must have guarantors for loan.

SAVINGS FIRST

  • First and foremost, Taqwa is a Saving society. What does that mean? It means that the best member is one who joins the society to save. A good member will only think of taking loan in times of need after having saved consistently as a preparation for the time of need. Remember how Nabii Yussuf interpreted the dream of the King.
  • Secondly, Taqwa is a Credit Society. Kindly note that Taqwa is NOT  a Credit and Savings but SAVINGS and Credit society. Savings comes first. Any person who joins Taqwa today expecting to withdraw credit of 3 times his savings the following day will be disappointed. However that kind of person or member who needs an instant loan may still be taken care of by our banking section known as FOSA.
  • A good member is the one who saves consistently. Experts advise that one should save a minimum of one tenth of one’s income. We advice our members to make their savings through check-off system if employed or through a standing order, if self employed.

HOW TO APPLY FOR MEMBERSHIP

  • Obtain an application form for membership from our offices in Jamia Plaza or download the form from our website BOSA-APPLICATION-FOR-MEMBERSHIP.pdf complete the form, and pay a ksh.1,000 non-refundable membership fee.
  • You will be required to pay a ksh.200 monthly service charge and save consistently a minimum of ksh.2,000 per month either through check-off system or standing order, a total of  ksh.2,200 per month.
  • Every member is required to buy at least one FOSA share @ ksh.15,300 and the maximum FOSA shares a member may buy is 25 shares.

APPLYING FOR A BOSA LOAN

  • Taqwa has put in place measures to make it easy fo you to save, obtain loans and for you to pay back in order for Taqwa to serve you better.
  • To qualify for loan you must be a consistent saver. It is expected that once you get the loan you will pay it back consistently. Your ability to repay the loan regularly is demonstrated by your ability to save consistently. As a new member you are expected to save consistently not less than ksh.2,000 per month for not less than 12 months before you can qualify for a loan.
  • If you are not ready on check-off system you will be required to arrange for that  or you will be required to repay your loan through an irrevocable standing order. 
  • Most importantly you should have guarantors who have enough savings in Taqwa to guarantee your loan. This is a legal requirement by the laws of Kenya. These may be your relatives, friends, work mates or other members you have introduced to Taqwa or come to know during Taqwa events. Those members you have introduce many peers to join Taqwa have an advantage of getting guarantors from among the peers. You should also attend Taqwa events such as our AGMs or Education Days where you will meet other members whom you never expected.
  • You will also be required to pay a loan processing fee equivalent to the coast to Taqwa to process your loan. You may apply for a loan as much as 3 times your share savings.
  • However in case you are unable to find guarantors, or you choose not to pay the graduated loan processing fee, you are entitled to apply for a FOSA loan. FOSA loans do not require guarantors and there is no loan processing fee. For a FOSA loan you only need to have sufficient collateral or security such as a title deed, a log book or Taqwa letter of allotment.  There is the added advantage that FOSA loans, the loan provided is more than BOSA.

MEMBERSHIP OBLIGATIONS

  • Your first obligation as member is that you must save as much as possible preferably 10% or more of your income. You should also serve consistently. Your BOSA savings are known as Share Deposit that is not withdrawable, in part or in whole unless you intend to terminate your membership completely. You can however take a loan against your savings.
  • Should you take a loan, you must pay according to the agreed schedule. If you default you risk being blacklisted from getting further loans. Your guarantor will be liable to pay for the loan. Lastly, you may be reported to the Credit Reference Bureau (CRB) which will make you unable to get clearance for public appointment or an elective position.
  • Taqwa Sacco has recurrent expenses such as rent and salaries of the small staff as well as other expenses such as materials and equipment for normal office operations. To pay for these recurrent expenses Taqwa members have agreed to pay the monthly service charge of kshs.200/=  per member per month. In addition for each loan taken, a member has to pay a loan processing fee, a one time payment calculated on the cost of processing the loan. Bigger loans involve more processing work and time and therefore attract higher processing fees calculated by the Shariah Board.
  • Taqwa is a Shariah compliant SACCO and we do not charge interest. Our loans are Qardh al-hasan. Our model of paying for operational expenses through the service charge and loan processing fees are approved by our Shariah Compliant Committee and  the prominent scholars we have consulted.
  • By signing the membership application form you accept to support the model of paying for the running expenses of Taqwa Sacco through a monthly service charge as well as the payment of a fixed graduated loan processing fee for any loan you take.
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