What is Loan Appraisal?
Loan appraisal is the process by which a SACCO assesses a loan application: whether the member is eligible, what their deposits support, whether the repayment is affordable against their income and existing deductions, whether the guarantors offered have capacity, and, for a business loan, what the business actually earns.
A real Kenyan example
A member applying for a business loan is asked not only for their deposit history but for evidence of what the business turns over, because the repayment has to come from somewhere.
Why it matters
Members often prepare only for the deposits question and are unprepared for the affordability and income questions, which is where business-purpose applications most often stall. The deposits set the ceiling; the appraisal decides what happens underneath it.
How Veira helps
A business loan appraisal asks what the business earns, and most small Kenyan businesses answer with an estimate because an estimate is all they have. A business running on Veira has a recorded sales history instead, with business money kept separate from personal money, which is a document you can hand to a loan committee rather than a figure you assert.