Why You Should Consider Joining A Sacco

Sacco staff registers a member at AGC Immanuel Church, Kericho

Savings And Credits Cooperatives (SACCOS) have seen a steady rise in popularity over the years. Many attribute the growth to the tailored-made products they offer to their customers alongside low interest loans and generally, a lot of extra benefits that might be hard to come by in other financial institutions. Consequently, SACCOS, as are majorly focused on specific niches, have contributed greatly in raising living standards of the people affiliated to them. This has seen these enterprises receive support from local and national governments in terms of policies thereby giving a massive push in ensuring SACCOS become a part of the financial system in the country.

However, despite the fame these financial institutions have received, many individuals, especially new employees or young business people cannot quite tell the difference between Banks and said SACCOS. So, what makes a Sacco different from a bank and when do you need one over the other? Here are some benefits of joining a Sacco that might inform your financial planning and how you might choose to channel your earnings. 

Low Interest Rates

While some banks may have low interests rates at the time of borrowing, it is important to note that the rates might fluctuate in the course of your repayment. You might end up paying slightly more than you bargained for. On the other hand, SACCOS rarely change their rates as most of these enterprises are not looking to make profits. The rates therefore remain highly competitive and extremely low which ensures members borrow, invest and repay as what they had initially planned to.

Risk Assessment and Credit Score

Getting listed in the CRB is that inevitable unfortunate thing that is bound to happen what with shifting economic states, inflation etc. Getting a loan from a bank with poor credit score automatically affects your chances as that will likely get in the way. This is quite different with a Sacco, as long as you follow company guidelines and demonstrate a willingness plus capacity to repay, getting a loan request approve is easier.  You can go as far as to apply for multiple loans with your Sacco.

                              Dividends

This is probably the biggest perk of joining a Sacco. A Sacco like Imarisha will pay out dividends on regular intervals annually. These dividends will further go as far as help you when applying for a loan.

                              Loan Amount

If you are just starting out in your business and do not yet earn a steady income, joining a Sacco greatly benefits you. You will, at the request of a Loan, avoid all the hassle of proving you are a low risk borrower a you would with a bank and qualify for one based on your savings. The amount you have saved so far will be multiplied a couple fold as per the company’s rates. Therefore, with a Sacco, you do not need to be earning a steady salary to be eligible for a loan.

 

How To Join Imarisha Sacco

Visit any of our branch with the following requirements:

1.      1. A copy of National ID

2.      2. KRA PIN