What are the advantages of borrowing from a Sacco instead of a Banks
- SACCOs have lower interest rates and these rarely change.
- Most SACCOs in Kenya have been lending at 12% per annum, which is lower than the banks have offered even when market rates have been at the lowest.
- Banks constantly revise their lending rates while SACCOs will rarely do this.
- As a member of the SACCO, you earn interest on your savings which are part of what you have borrowed lowering your borrowing costs further.
While repaying a SACCO loan, a member is expected to still maintain the same level of monthly savings as they did before. This builds a saving discipline, and helps one accumulate a substantial savings base