Do you want to save money? Have you had a hard time choosing a suitable Sacco? Look no further, this article guides you on how to choose a Sacco for your savings in Kenya.
SASRA, a body that regulates Saccos, released a report that indicates growth in membership. According to the report, membership increased by 7.02% in 2022 to reach 6.42 million members compared to 5.99 million members in 2021. Additionally, there are 359 regulated Saccos. This makes the process of making a choice of a Sacco for your savings quite difficult.
Reputation
Before you join a Sacco, ensure you conduct due diligence. Know their public image, and check if they have any issues with any party. This enables you to eliminate those Saccos that are on the verge of closing business. Such issues may make you lose your hard-earned cash.
Technology
In today’s world, technology plays a vital role. A good Sacco should have an online platform that you can leverage for your transactions. Through the provided technology, you can view and transact easily.
Loan products
Loans are the ultimate benefits to a member of a Sacco. A good one should have various loan products such as emergency loans, development loans, etc. depending again on how they are named. However, such loans should give you the benefit of time, interest rates, and requirements for you to qualify.
Customer service
Customer service is key when attending to member’s inquiries. A good Saaco should provide directions, answer questions, and communicate to members promptly. But the question here is, how do you know if a Sacco has good customer service? Well, you can reach out to their media platforms or any other communications channel and see if they meet the criteria of good customer service.
Dividends
Dividends are the money you are paid for saving your money. Ideally, your deposits are used in various ways to earn interest at a higher rate. Dividends are paid annually, and the rate depends on different factors.
Minimum share capital and monthly contribution
Each member of a Sacco should own some shares through share capital. The amount of share capital varies from one Sacco to the other. Aside from share capital, you should also make monthly contributions. These contributions constitute your savings that are used to evaluate your loan limit and dividends among other things in the Sacco.
Investment opportunities
Saccos exist to take investment opportunities on behalf of the members using their saved money. Many opportunities determine whether a Sacco can easily succeed or not.
Bottomline
As you look for a Sacco to join, take your time to know the above factors among others. The list is not exhaustive but lays a foundation on what each potential member should consider. Collapse is common place and as such, you should not find yourself in a situation of loss.
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