Your savings rule and held savings
How much a member can borrow against their savings, and how savings are held while a loan runs.
Many cooperatives only lend a member a multiple of what they have saved — twice their savings, three times, or exactly what they've saved. Each cooperative sets its own rule, on each loan product, to match its constitution.
How it works
The savings multiplier
On a loan product, the Savings multiplier says how many times their available savings a member can borrow.
| Multiplier | A member with ₦100,000 available can borrow up to |
|---|---|
| 1 | ₦100,000 |
| 2 | ₦200,000 |
| 3 | ₦300,000 |
| empty | No savings requirement — only the product's own maximum applies |
A member's limit on a product is the smaller of this figure and the product's Maximum Amount.
Held savings
When Hold savings while the loan is running is on, paying out a loan puts part of the member's savings on hold: the loan amount ÷ the multiplier. A ₦200,000 loan at a multiplier of 2 holds ₦100,000.
The held money is not spent or debited. It stays in the member's savings account and still counts in their balance, but:
- it can't be withdrawn,
- it can't be counted again to borrow a second loan, and
- it is released as the loan is repaid — in proportion to the principal repaid, and all of it once the loan is fully paid off.
Example: on that ₦200,000 loan, when ₦50,000 of principal has been repaid, ₦25,000 of the hold is released.
Balance, held and available
Members see three figures on My Savings: their total balance, how much is held against their loan, and how much is available. Available is the total balance minus anything held, and it is what the borrowing limit is based on.
Why it matters
The rule is checked when a member applies, again when an officer approves the application, and again when the loan is paid out. A member who withdrew savings — or took another loan — after applying can't slip past it, and applications that no longer fit are refused with a message showing the new limit.
What you can do
- Officers: set the multiplier and the hold switch in Setting up loan products.
- Members: see your limit and what will be held in Applying for a loan.
Related
Setting up loan products
Configure a loan type with its own amount limits, interest and guarantor rules.
Applying for a loan (members)
A four-step guided application — product, amount, purpose, and guarantors if needed.
Paying towards your loan (members)
Pay the cooperative, upload your receipt, and see the repayment recorded once an officer confirms it.
Last updated 21 October 2026