Amazing Benefits of Joining a Sacco

” I’m sorry, but you do not qualify for a loan at this moment, but you can try next time when you have substantial security…”

Those are some of the words that you’ll often hear from a bank loan officer when trying to access a loan from your bank, which you’ve been an esteemed customer for over aperiod of time. It has becoming increasing difficult to access loans from a bank these days. But what if I told you that all that struggle and suffering to acquire a loan can end right now. What if I told you thhere is a saviour and his name is SACCO. Yes, saccos are becoming more popular nowadays especiallly with people who’ve had very few successs when it comes to acquiring loans from bank. I’m talking about employees on contract, new upcoming business people etc. And just how do SACCOs come in and of what benefits do they offer.

A SACCO is an acronym for Savings and Credit Co-operative Society. SACCOs are usually formed and run by members with a common goal and vision and that is mainly to provide financial power to its members. The underlying principle of a SACCO is to save and provide credit facility to its members. So what are some of the advantages of becoming a member of a SACCO?


Saccos help you to save. As a member you are usually required to contribute a certain amount of money towards your savings. You all know how it’s hard to save especially if you don’t have a specific goall in mind. But with a Sacco you can continously keep on saving until that day that you’ll come up with an idea for something. It could be a business, buying land, a house etc.


It’s much easier to secure a loan from a sacco as opposed other financials. As a memeber you are usually entitled to getting a loan that is usually worth a certain number of times the value of your deposits. It could be three or four times depending on the sacco policies. In addition to the ease of acquiring a loan the interest charged on the loans is usually much cheaper than financial banks.


A sacco member you are a co-owner of the sacco and therefore you are entitled to dividends annually. Saccos usually pay a good dividend rate on your entire savings. The dividend rate may be as high as 10-15%.. Imagine if you had Kshs 1,000,000 worth of savings and the saccoo declares a dividend rate of 10%. That’s a whooping Kshs 100,000 in your pocket. Seriously, how better can it get?


Are you planning on saving for retirement but don’t have a concrete idea as to where to save? Why not start with a Sacco. Like I mentioned earlier saccos usually give a good dividend rate and if you can save let’s say Kshs 5,000,000 by the time you’re retiring and the Sacco declares a 10% divident rate annually that translates tto Kshs 500,000 annually. Divide that by 12 and you’ll be earning roughly kshs 41.667 per month.


There are certain saccos that do acquire land and build houses which interested members can purchase at affordable prices.

If you’ve been trying to access loans from banks but you are being turned away every time then you should try Saccos. They are a good option and the interest rates are relatively low.