Products and Services

The various products that SACCOs offer over the long term are most often member driven. Typically a SACCO starting out will offer members various short and long term savings and loans:

Shares: Every potential member must purchase a minimum share as determined by the SACCO making each member an owner of the co-operative. Once the share has been fully paid up, all other contributions will go towards savings.

Savings: A member’s monthly contribution is usually split between various types of savings accounts. Savings unlike shares are withdrawable on demand. Each SACCO determines amongst its members what the minimum savings per member will be.

Quick/Emergency loans: Emergency loans are short-term quick loans available to members to meet unforeseen circumstances, not budgeted for. Typical Emergency loans are between R100 - R300 with a repayment period of R100 per month.

Loans: Members are encouraged to save toward loans. Loans are ratio based on member’s savings and shares. Individuals who have established their credit worthiness through regular savings and are able to show an ability to repay a loan can earn the privilege of borrowing these savings in the form of a loan. Some loans are made for productive, income generating activities, a business idea or toward a house; other loans are made for provident purposes such as school fees, funerals and weddings.

Funeral and Loans Insurance: This is a very popular product with members, and SACCOs usually nominate, once generating income, to apply for such insurance.

Term deposits: Some SACCOs are offering their members 1 year fixed deposit accounts at varying interest

Xmas, educational and housing savings: These are popular products among our SACCO members.

A well established SACCO would begin to look at developing products that a conventional bank has to offer including:

  • Access to ATMs
  • Stop order facilities
  • Automated bill payments 
  • Full range of insurance products
  • ATM  debit Cards

SACCOs products are membership driven. SACCOs know local conditions and it is for the SACCO leadership to map out the progress and developmental plans of the SACCO to meet member’s demands and needs.