Members meeting are organized by Rural Cooperatives Societies also known as Agricultural Marketing Co-operatives Societies (AMCOS) to deliberate on the amount to borrow from KCBL in that particular season.
Minutes of the meeting are forwarded to Regional Co-operative Officer to get Maximum Liability Certificate (MLC).
• Overdraft application letter indicating amount and purpose.
• Maximum Liability Certificates from Regional Cooperative Officer.
• Audited financial statements for the previous year.
• Minutes of members meeting which authorized borrowing from KCBL.
• Cash flow projections indicating coffee collections and Sales for that particular season.
• Bank receives overdraft applications and prepares contracts which will be signed by both parties. The contracts include overdrafts agreement, letter of hypothecation of goods and guarantee forms.
The society will write a letter to Warehouse operator allowing the coffee to be cured and sent to Tanzania Coffee Board for auction where by another letter is written to Tanzania Coffee Board asking to channel all RCS’ coffee proceeds to the respective account at KCBL.
A KCBL customer who has a desire to apply for a loan in the institution must fulfill the below requirements before writing application letter.
• Must have at least 3months well serviced saving account according to his or her business operations.
• Must have a continued/existing registered business/economic project.
• Must have a collateral (registered immovable property /house with deed) to secure his/her loan.
• Must have good history in other Financial Institutions.
• Visit to his /her business site and collateral.
Coupled with the above requirements later the client will need to submit the following documents:
• Audited accounts of his business
• Valid insurance for his/her collateral /property.
• Land rent for his/her collateral
• Fill the Spouse/Owner’s Consent form
• Register his /her collateral in favor of KCBL.
Without delay ,a client will get the loan as soon as possible after he/she completed the above requirements and documentation.