SACCOs in kenya are on the rise. This is due to the beneficial aspect they provide to their members. Unlike banks, SACCOs give their members a chance to share profits equally. It’s also owned and managed by members. SACCOs help you save and grow up financially. You can also be able to take low interest loans without having to go through the struggle of getting of convincing guarantors.
Most youths have not yet embraced the idea of SACCOs. This is due to lack of information about the same. Instead of saving in banks with low interests rate, you can put your money in a sacco so that dividends can be handful. And since its equally shared among members, it’s a huge benefit to venture into this. Let’s dig on the benefits of joining and investing in a sacco.
Easier loan Access from saccos. Unlike banks that take you through processes, requirements and low processing rate, saccos offer fast processing, low interest rate and less requirements. Emergencies can be sorted as soon as possible with this. As a member, you can easily access the loan and repay later. Youths in saccos can take up these loans and set up businesses which can both service the loan and support them.
They also provide an investment opportunity. With a sacco, as members you can invest in assets which in turn provide low cost access to members. This means that members can commit to invest in properties and income generating ventures that will help the members grow financially.
Financial Discipline is another importance of joining a sacco. By joining a sacco, you develop financial discipline through saving. This will help you manage your finances and keep your spending in check. Ensure you join a sacco that motivates you and keeps your finances safe.
Saccos promote a saving culture among members. This means that as a member, you’ll always want better dividends. This means you’ll desire to save more to achieve this. The friendly competition among members makes you grow financially through aspiring to save more. Accessing savings is also impossible which makes it better than banks where you can access your savings at a slight provocation. This makes saving hard.
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Lower interests on loans. As a member in a sacco, you can access loans at a relatively low interest rate as compared to banks. This means that you don’t have to struggle paying double the money you borrowed. Instead, a friendly interest rate is allocated to members in demand of loans.
Financial increment. Accumulation of wealth and finances through saccos come in when at the end of each financial year, saccos declare returns and distribute to members based on their shares. More shares means more money. This will help you grow financially and become independent.
With saccos, liability is limited. This means that you don’t have to risk so much when it comes to loans and finances. Your savings and shares are your liability. Other members or any other person doesn’t have to suffer for your decisions.
Before joining a sacco, you should do your due diligence first. Most saccos are having internal conflicts, poorly managed and lack of transparency. You don’t want your money in a setting like that. So always do your due diligence to ensure you are investing in a sacco.
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