IA SAVINGS GROUP CONSTITUTION

A. INFORMATION ON THE SAVINGS GROUP

Name of the Savings Group: KK Savings Group

Location: Global

Date Formed: 3rd January 2025

B. OBJECTIVE OF THE GROUP

The objective(s):

• To provide a platform for its members to save
• To provide an opportunity for members to borrow
• To promote team building and to allow members to share business ideas and projects

C. MEMBERSHIP CRITERIA

1. Membership is open to any person of good character and standing in our society, committed and trustworthy.
2. Serving group members may propose new members to join the group.
3. The general assembly needs to approve new members proposed to join the group.
4. The group will have a maximum membership of 45 people.

D. COMPOSITION OF THE EXECUTIVE COMMITTEE

1. Chairperson
2. Vice Chairperson
3. Secretary
4. Treasurer

The main duties of the executive committee is to manage the affairs of the Group.

E. ELECTION PROCEDURES

1. Mutual Consent

F. MEETINGS

The group shall discuss all its issues, suggestions/implementation of events and activities on WhatsApp once a month as we are all based in different places. However, all decisions shall be made through the executive.

G. THE 25 GOLDEN RULES

1. The circle will run for a period of 12 months.
2. The group should constitute a total number of 45 members.
3. Everyone pays a minimum of K1000 at the beginning of the circle.
4. Every member is expected to make a contribution of not less than K200.00 per month (this is translated as 1 point) and any member that omits a month’s contribution shall pay 10% as penalty fee to the group.
5. 15% interest is paid on total loan borrowed per month.
6. The remaining money will be shared among the members according to one’s borrowing power. Members that don’t wish to borrow will be charged interest on the allocated idle money.
7. All payments should be made monthly. Failure to pay complete loan repayment 15% will be charged on the amount withheld for that month.
8. Each member is allowed to save up to K10,000 once off; this amount is to be saved within the first 3 months from the start of the cycle.
9. Any member that repeatedly does not make their contributions or loan repayments within the stipulated time will be excused in the next cycle.
10. Interest calculation mode used will be compound interest and apportionment of interest on savings will be calculated using a point system in the month of saving.
11. Late payment at share out calls for expulsion while during the circle one will be given a break from the next circle.
12. One is only allowed to borrow twice their savings.
13. Money borrowed and not paid back calls for expulsion of member and amount borrowed will be deducted from member’s savings.
14. If the borrowed money is more than the savings, the group will confiscate an item twice as much as the borrowed amount.
15. All monies borrowed when the group has less than three months to maturity has to be paid back before maturity regardless of the amount borrowed.
16. All monies contributed by members will be given back to respective members inclusive of their cumulative interest respectively.
17. All contributions should be done not later than the 3rd day of the month following the month of contributions.
18. All monies borrowed should also be paid back not later than the 3rd day of the month following the month money is borrowed.
19. Savings shall accumulate 10% interest on a monthly basis.
20. All members should be able to give their physical addresses and contacts of their next of kin.
21. All members must sign and scan back a copy of the constitution as consent to all the rules listed down in the constitution and attach a copy of their NRC.

NOTE: The village banking shall be run by the mobile application called Kusunga Kwacha and membership fee is K100 once off, with an administration fee of 5%. The app is registered with Pacra.

H. DEATH OF A MEMBER

If a member dies, the Group will calculate how much money should be given to their next of kin using the following principle:

• The family of the deceased will be given what the member has saved less loan taken plus interest accrued at the point of death.
• In the case where the member is owing the group money, the next of kin or family will pay the debt on her behalf.

I. CONSENT FORM

I, of NRC No ___________________________ of House number ______________________________________________ , hereby agree to all the terms and conditions listed in the constitution and acknowledge that by entering into this agreement, if I fail to pay back the loan, I authorize Village Banking Group to seize property equivalent to the amount due from my home or take any legal action.

Signature: _____________________

Date: _____________________

My next of kin in case of anything will be liable and is:

Name: _____________________

Address: _____________________

Phone Number: _____________________

Signature: _____________________