Terms and conditions

Snapshot of Terms and Conditions

•Registration fee Ksh 200

•Membership adults above 18 years

•Borrow three times savings after1 (one) month

•Guarantors to guarantee two thirds of borrowed funds (borrower plus guarantor’s total 100%)

•Loans at 1% interest per month

•Loan processing fee is Ksh 300 minimum or 1% of loan amount and a ceiling of Ksh 1,500*


Detailed Terms and Conditions

1.After registration members can start accumulating savings by submitting any acceptable amounts by the system to ones account

2.Contributions are updated in real time via M-ASCA menu

3.Members can check their M-ASCA balances from their phones at any time

4.Members will only qualify for borrowing after one (1) month of active membership and can borrow up-to three times of amounts contributed.

5.This will be done via the loan application module where the member will enter amounts to borrow, for what period and attach guarantors.

6.The system will allow a maximum repayment period of six months for loans not exceeding Ksh 50,000; between 50001-100,000/- a maximum of one year; 100,001-200,000/- a maximum of two years and a maximum of three years for higher amounts. This will be subject to review as the association grows.

7.Loan application and processing fee is Ksh 300 or 1% of loan amount with a ceiling of Ksh 1500.

8.M-ASCA loans will attract an interest of 1% er month.

9.Any amount borrowed must be guaranteed by at least two M-ASCA members whose savings total 2/3rds of borrowed funds. The two plus the borrowers should provide 100% guarantee of borrowed funds.

10.Members can have as many guarantors  as they wish to avoid declining of loan requests on the account of insufficient guarantors

11.Guarantors must sign to guarantee borrowers

12.Once guarantors accept, the member will be informed via SMS that the loan is being processed.

13.If there is a problem with the guarantor, the system will inform the borrower of the reason e.g. guarantor has declined, guarantors not sufficient etc.

14.When a member’s loan is approved it is disbursed to the members temporary account. From the temporary account the member can choose to transfer the funds to their bank account at their own cost or send the money to m-pesa where it can be withdrawn or used through available options e.g. buy goods, pay bills etc.

15.Members will get an SMS informing them of the amount disbursed, repayment amounts and repayment dates and period.

16.Amounts transferred to m-pesa will also generate the normal m-pesa communication

17.Once the repayment date is set, members will be allowed to repay the monthly installment at anytime in any amount acceptable by the system provided that by the end of the particular month the whole installment is paid.

18.Members are also required to maintain a savings of not less that Ksh 200 every month. This is paid together with the monthly loan repayment. However members in a position to save higher amounts are encouraged to do so as this enables them to borrow a higher loan or qualify for a second loan even before clearing the first one.

19.The system will generate reminders for loan repayment on a monthly basis. These messages will be copied to guarantors.

20.The guarantors will be required to actively ensure that borrowers repay loans in time otherwise their contributions will be used to recover defaulted amounts according to guaranteed amounts at the expiry of six consecutive months.

21.The association will also follow up on the repayment of borrowed funds and in case of recovery, the association will do this with the knowledge of the guarantor.

22.The association will organize a members meeting once a year.

23.Annual reports for the organization will be published on the association’s website and also availed to members during the AGM, however the association activities and reports will be filed at the Ministry offices after every six months as a mandatory requirement.

24.Members are allowed to withdraw their membership upon giving a notice to retrieve their savings. This will be successful if the member has savings exceeding the withdrawal fee of Ksh 1,000, have extra funds to meet transfer charges to bank or m-pesa, have repaid all their loans and have not guaranteed running loans. This will be submitted via the M-ASCA platform under close account.

25.If the withdrawal is successful a refund will be done within months and an SMS send to the member informing them of refunded amounts and mode of disbursement.

26.Members who close accounts can register again if they so wish and meet all requirements of a new member.

27.Members who withdraw from the association will not qualify for any benefits from the association thereafter.

Black listing and whitelisting

  1. Any member who defaults payment of loans three times is blacklisted
  2. A member who is blacklisted can access the M-ASCA platform to repay the loan or save in the temporary account and other functionalities but cannot borrow or guarantee anyone.
  3. If they have money in their temporary account, the association will first recover loan instalments from the temporary account before recovering the same from guarantors.
  4. Outstanding loan amounts will be recovered form guarantors automatically after six consecutive months and the account will be closed.
  5. The  association will follow up off the system to assist the guarantors get their money and in case the borrower becomes active and starts saving again, the association will engage the borrower and the guarantors off the system
  6. A blacklisted member can access the system at any time to repay their loans
  7. Once a member has repaid their loan, they are reinstated (whitelisted) as fresh members and have to earn credibility by remaining active for six months
  8. During the six months after white listing a member cannot borrow but can guarantee others with their contributions
  9. They resume borrowing after six months provided that they have sufficient guarantors

In-active members

  1. Members will be deemed in active if they do not save the mandatory Ksh 200 per month even if they have savings in their temporary account
  2. Members who engage in other activities in the M-ASCA platform will be recognized as members but cannot borrow as per the one month active saving rule.
  3. To be able to borrow they have to reactivate their membership by saving.
  4. One can only cease to be an M-ASCA member if they request to close account through the my account module, so it doesn’t matter the length of in activity, their accounts will be valid.

USSD Tariffs

Any communication that is accompanied by an SMS response attracts an SMS charge as SMS’ are outsourced. Consequently the mobile money system attracts a maintenance fee . To meet these expenses,  system requests attract minimum charges: These include:

Item Cost in Ksh
External charge M-ASCA Total
Savings Deposit MNO Charges apply nil
Send to M-pesa MNO charges apply 10
Statements requests Sms 3 7 10
Balance requests Sms 3 2 5
Change pin Sms 3 17 20
Registration MNO charges apply nil
Configure bank details Sms 3 17 20
Change next of kin details Sms 3 17 20
loan repayment Sms 3 2 5
Check status of loan Sms 3 2 5
Add guarantor Sms 3 2 5
Send to bank EFT charges apply 10
Close account Sms 3 2 5*
Loan application Sms 3 2 5*


Tariffs are subject to review depending on market dynamics*




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