A SACCO is a self-help, member-driven democratic cooperative. It is presided over, managed, and owned by its members. SACCOs are an effective means of creating wealth and financial stability because they are easily accessible and offer loans to their members.
There are numerous savings and credit societies (SACCOs) operating without proper registration in Kenya. To make sure you join a compliant and good SACCO, you need to consider the following factors together with a good personal research base.
This is perhaps the main factor to consider. Ensure you do your research on – how long it has been in operation, any suspicious activities, and reviews on Google or other apps.
Note that some fraudulent business models and scammers camouflage themselves as Saccos. The Sacco Society Administrative Position (SASRA) is the public authority administrative expert for Saccos. You can contact them if all else fails since they must authorize any authentic Sacco.
The old-fashioned informal exchange could likely give you even significantly more certainty by finding out about the great and awful SACCOs through the encounters of your companions, family, associates, and colleagues.
- Interest rates/dividends
While all Saccos may appear similar, some will offer you two-digit interest rates on your shares while others will offer 5% or less toward the year’s end.
If you purchase a lot of shares relative to your income levels, then the interest rates being offered by the SACCO you choose to join should be an important factor to consider.
You would do well to find out about the Saccos guarantor and loan limit policies. Since various Saccos have various ways to ensure that loans are repaid, it’s upon you to assess the various policies and pick a Sacco that best addresses your issues.
A few Saccos may demand guarantors, while others offer the adaptability of giving loan collateral. Depending on your circumstance, you might need to join a Sacco where you know a few individuals who can guarantee your loans, for example, your manager’s Sacco or one where the majority of your companions or relatives are in. You could likewise pick a Sacco whose standing and execution intrigues you and offers the alternative for insurance.
If your primary justification for joining the Sacco is to get a loan, analyzing these policies is quite important.
- Investment opportunities
While the entire thought behind Saccos began with assisting individuals with creating a savings culture and get a loan against their reserve funds, numerous Saccos have made investment subsidiaries that offer individuals venture openings – one of the more well-known ones being the capacity to acquire land.
Saccos authorized by SASRA give you the certainty to pick them as investment accomplices. Investment opportunities offered by these Saccos have become quite popular due to their credibility and low risk.
While most Saccos have consolidated present-day advancements in their tasks and client support, it is as yet imperative to understand what your favored Sacco offers regarding the comfort of not visiting a branch when you need something approved.
Would you be able to send cash, deposit contributions, purchases, withdraw cash without queuing, or even worse, traveling to find the nearest branch? It is favorable to pick a Sacco that is technologically advanced to avoid inconveniences.
While all Saccos have close comparative working standards, not all Saccos are made equivalent. Some have many individuals across the regions, and others have only a couple branches. Some have not many technological advancements and much less offer two-digit interest rates. Do proper research before choosing a Sacco to make sure you join the one that fits your needs.
BY Tracy Gichohi
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