Joining a Savings and Credit Cooperative (SACCO) can provide several benefits, including:
Access to credit
SACCOs provide loans to members at relatively lower interest rates compared to traditional financial institutions. Members can use these loans to meet various financial needs such as starting or expanding a business, paying for education, or purchasing a home.
Savings
SACCOs encourage their members to save regularly, thereby helping them build a savings culture. Members can save towards specific goals such as buying land, paying for school fees or even purchasing a vehicle.
Dividends
SACCOs share their profits with their members in the form of dividends. The amount of dividends paid to members is usually based on the amount of shares they hold in the SACCO.
Financial education
SACCOs provide financial education and training to their members, helping them to make informed financial decisions, such as budgeting, investing, and managing debt.
Access to other financial services
SACCOs may offer other financial services such as insurance, money transfers, and investment opportunities to their members.
Democratic ownership
SACCOs are owned and controlled by their members who have equal voting rights, regardless of their level of savings or loans. This democratic ownership structure ensures that the interests of the members are represented in decision-making processes.
Social support
SACCOs provide a sense of community and social support to their members. Members can interact with each other, share experiences, and learn from each other.
Overall, joining a SACCO can provide a range of benefits that can help members achieve their financial goals and improve their overall financial well-being.
PS: If you are a member of a SACCO or CHAMA and you are still managing your records manually, please mention fibo360 to your management & fellow members. Fibo360 is the best SACCO management system.
You can also learn more about the benefits of a sacco management system here