Sacco Reputation
This is one of the most important things to check when it comes to Saccos. Before joining any Sacco, you need to have complete confidence in the company that you trust your money with. Make sure you research about the Sacco. Visit their website and learn about them, understand their mission and vision statement. Go through their reviews on social media sites and explore their about page. You can learn if the Sacco is legitimate by contacting SASRA, which is a Kenyan Sacco regulatory board. You should be aware that some scams and pyramid schemes often disguise themselves as Saccos. Be alert and research as it is your best defender in this situation.
SASRA, stands for Sacco Society Regulatory Authority. It regulates supervises and licenses Saccos in Kenya, therefore any legitimate Sacco is known by SASRA.
Guarantors and Security
Another major important factor to consider before joining a Sacco is their guarantor and loan limit policy. Different Saccos have different ways to ensure you pay back your loans. Therefore you need to analyze and evaluate different Sacco’s policies. For instance, some Saccos prefer you use guarantors before they offer you a loan. A guarantor is someone responsible for repaying your loan in the event that you default it. The number of guarantors differs, as some may ask for multiple guarantors as opposed to one. Other Saccos prefer getting loan security, which includes but is not limited to cars, houses, businesses, or furniture. These factors often differ depending on the amount of loan you want to secure.
Getting a guarantor may not be a problem right? Well here’s the catch, for you to get a loan, the Sacco requires all your guarantors to be their existing members. This means that you have to know 5 existing Sacco members before applying. This not be convenient for you, if you do not know any members of that Sacco. So before joining the Sacco, go through all their requirements. Critically analyze them especially if your main reason for joining is to access a loan. Also, make inquiries about required guarantors or possible loan security requirements.
Incorporation of modern technologies
We are currently living in a technologically revolutionized world, which has made it a global village. We often use our phones as a one-stop-shop where we may find all the goods, services, and information we need. It is very convenient for you to become a member of a Sacco you can easily access through your mobile. Accessibility is a priority while joining a Sacco. Accessibility ensures you do not have to step in a branch or make long queues when making deposits and withdrawals.
Therefore, when choosing a Sacco, be sure to prioritize a Sacco that is technologically advanced. This will ensure you can easily access your finances, and it saves you time and energy. Look for features such as transfer funds, security measures, budgeting tools, and saving plans. You should also prioritize a Sacco that utilizes online budget management and financial bookkeeping. This can be done through applications such as Chamasoft and WebSacco. This gives easy accessibility to all the Saccos accounts and you can monitor the Saccos transactions online.
Here’s a link to join
We hope this information has been helpful.
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Need more information on savings groups such as Banks, Chamas and Saccos, then check out our other blogs below!
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