How Gideon turned Sh300,000
loan into a fortune
By Ndichu Kamau.
Gideon Waweru was a bank customer until he realized that it was more expensive to apply for a loan from this bank.
It was at this point that a friend introduced Waweru to Tai Sacco where he registered as a member. Eight months later, Waweru took out a loan of Sh 300,000 to implement personal projects. The loan took two days to be processed. Waweru was able to repay the loan within 9 months.
Waweru, who is a distributor of raw milk in South B, South C and Nairobi West, decided to buy a personal car for which he applied another loan of 750,000 to be repaid in three years.
While still repaying the 750,000 loan a neighbour, who was relocating to the USA after acquiring a green card, approached Waweru to sell him a Sh 1.4 million plot of land. This neighbour was assisted by Waweru to acquire a 50 by 100 metres plot at the Eastern bypass in Nairobi at a cost of Sh 65,000 back in 2003. Waweru was therefore the preferred choice and buyer of this plot from his neighbour.
Gideon had 2 weeks to buy the Sh 1.4 million and so he repayed the car loan balance of Sh 340,000 and then applied for a Sh 950,000 loan. Gideon was able to top up this remaining balance from milk earnings in order to raise the required Sh 1.4 million.
“I now deposit proceeds from the milk business with Tai Sacco. The Society has instilled in me a savings culture which comes in handy when one is in need of a loan,” said Waweru.