What a SACCO can do for you.

What a SACCO can do for you.

Savings and Credit Co-Operative (SACCO) are associations registered under the Ministry of Cooperative Development & Marketing and authorized to take deposits from and lend to it’s members.

SACCOs are governed by the SACCO by-laws that state the objectives, membership, share capital, organization structure, management and lending regulations. The sector is regulated by the SACCO Societies Regulatory Authority (SASRA).

Why should you join SACCOs?

1. Cheap loans

Members of a SACCO, have access to loans from the SACCO guaranteed by their savings or those of other SACCO members. They lend money to their borrowers up to 3 times their savings. SACCO loans are often short term and priced lower than bank loans.

2. Build Credit Information

A person’s saving and borrowing information is recorded by the SACCO at all times. If repayment of all loans is done promptly, the individual’s borrowing record adds to his/her credit reference information which becomes useful in later days when they want to get bigger loans from other institutions.

3. Asset acquirement

Some SACCOs have arrangements with their members where the institution guarantees a member’s acquisition of assets. In these arrangements, members can get household items, plots, cars and stock for business with easier repayment arrangements.

4. Investments

SACCOs are a perfect way to channel your savings. The SACCO aggregates the savings and lends them out or invests in authorized instruments such as shares, treasury bills and bonds, and in some cases property as authorized by the by laws. Returns from SACCO savings for a member are usually high and sometimes better than what banks offer.