Individual Benefits

As soon as you start your own Savings and Credit Co-operative you take greater control over your financial life. Banks have to pay high overhead costs for branches, elaborate computer systems and many salaried employees. Banks also have to return a profit to their shareholders. In a Savings and Credit Co-operative, the user of the service is the owner and the profits stay with the members. Overheads are very low and salaries are minimized because of the contribution of volunteers.

This allows the Co-operative to offer very specific financial services to members for a lot less than a bank can. As a matter of principle, SACCOs endeavour to pay interest rates on savings that are equal to or higher than inflation, to safeguard members savings from the effects of inflation. Stop order deductions make savings easy and assure loan repayment, almost eliminating risk. There are no direct charges to members. If a member dies, his/her loan is paid off by credit insurance, which the SACCO pays for out of its operating income. However, certain age limitations apply.

After you have paid for the costs of running the co-operative, any surplus or profit is distributed to the members according to their patronage. There are no losers, only winners.