Terms & Conditions | Nufaika International

1. Membership Eligibility & Verification

To qualify for registration and access financial services under Nufaika International, applicants must meet the following mandatory criteria:

Physical Business Requirement: The applicant must own and operate a verifiable physical business location. Proof of business establishment may be verified physically or via documentation prior to loan disbursement.
Mandatory Admission Fee: A non-refundable admission fee of KES 500 is payable upon membership application. This fee covers registration processing and KYC identity verification.
Inactive Status & Readmission Fee: A member who remains for two (2) consecutive months (60 calendar days) without an active loan product will automatically be marked as Inactive / Suspended. Re-activation requires a mandatory readmission fee of KES 500.

2. Loan Products & Terms

Nufaika International provides two primary loan facilities designed for business growth and capital support:

A. Business Loan Facility

Duration: Choice of 15, 20, or 25 weeks.
Processing Fee: 4.5% of the approved principal amount (deducted at disbursement).
Interest Rate: 15% flat term interest rate.
Loan Limits: Minimum KES 5,000 | Maximum KES 30,000 (subject to credit committee adjustment).
Top-Up Feature: Members are eligible to top up their Business Loan starting from Week 8 of their active repayment schedule, provided previous installments are paid up to date.

B. Small Loans Facility

Duration: Fixed 10-week repayment period.
Processing Fee: 3.5% of the approved principal amount.
Interest Rate: 15% flat term interest rate.
Loan Limits: Maximum KES 15,000 (No minimum limit).
Second-Cycle Requirement: A member automatically qualifies for a Small Loan facility only when they are in their second cycle of a Business Loan.

3. Guarantor Policy & Rules

Loan applications require guarantee verification to maintain financial portfolio integrity:

Single Guarantor for Dual Loans: One guarantor may guarantee both the Business Loan and Small Loan facilities for the same client simultaneously.
Exclusivity Rule: A guarantor cannot guarantee two different clients at the same time. If a guarantor is attached to an active loan for Client A, they are ineligible to guarantee Client B until Client A's loan facility is fully settled.

4. Repayment Schedule & Accounting Method

Weekly Amortization: Repayments are scheduled on a mandatory weekly basis following loan disbursement.
Reducing Balance Method: Repayment schedules utilize a reducing balance accounting structure, breaking down each weekly installment into principal amortization and interest components.
Default & Penalties: Late or missed weekly payments attract default tracking. Overdue balances affect future cycle progression and credit ratings within the institution.

5. Amendments & Governing Law

Nufaika International reserves the right to adjust maximum loan limits, interest terms, and administrative settings through system administration oversight. All disputes are subject to the laws of Kenya.