Become a member of a Sacco<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Many people who are not conversant with Sacco operations and rules and are often disappointed when they cannot secure loans, especially where they are unable to mobilize members to act as guarantors or due to restrictions on direct withdrawal from their savings.You must be a member first before you save<\/p>

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Similar to commercial bank where you have to open an account before you can be allowed to have a savings plan, you must first buy shares in a Sacco to become a member. Every Sacco has a minimum share capital. This may not be payable in lump sum but can be deducted in installments.<\/p>

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One can start making your monthly contribution as soon as they are registered as a member. These shares are only transferable if you want to leave the Sacco. It is advisable to look for a member to whom you can transfer your shares if you plan to exit.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Savings and contributions must be regular<\/h5>

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Unlike saving schemes offered by commercial banks where the customer can put away something if he wishes, a Sacco saving scheme is not optional and is strictly regular. This means monthly contributions must be maintained throughout the course of membership without default.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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To save is to deposit and to access deposit is to borrow<\/h5>

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The monthly contribution will constitute the member\u2019s deposits out of which the loans are approved. But you have to take out a loan to access this money. This rule is simply captured in the phrase: \u201cto save is deposit and to access deposit is to borrow\u201d. You must figure out your liquidity needs before you transfer your lump sum savings from your bank to a Sacco. Once you put the money into a Sacco deposit, you can only access the money by taking out a loan or terminating your membership.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Saving and contributions have a minimum limit<\/h5>

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Although members have the choice to determine the size of their monthly contributions, there is a mandatory minimum monthly payment. This varies with various Saccos. This sum cannot be withdrawn except on termination of membership. But you can choose any amount above the minimum which you can contribute every month. Besides, there is flexibility in review of savings and contribution limit. Saccos, unlike banks, rely on members\u2019 savings and shares as their only source of capital to lend out. But one of their key benefits is the rule that what you qualify for must be within the limit of your savings.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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If you want to leave a Sacco<\/h5>

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As a member, you can resign from a Sacco you have joined. You have to do it in writing addressed to the committee or the Office Accountant\/Administrator. Then the office will confirm if there are any amounts due to the member or whether the member owes the Sacco. If a member owes the Sacco when the loan exceeds the deposit, then the member agrees with the office on how the balance can be paid. If the Sacco owes the member; deposit exceeds loan then the Sacco organizes for the refund. If a resigned member has guaranteed an existing member then the existing member has to find a replacement before the resigned member can be cleared.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t \r\n \r\n \r\n \r\n \t\r\n\t\t\t<\/div>\r\n\t\t<\/section>\r\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Many people who are not conversant with Sacco operations and rules and are often disappointed when they cannot secure loans, especially where they are unable to mobilize members to act as guarantors or due to restrictions on direct withdrawal from their savings.You must be a member first before you save<\/p>\n","protected":false},"author":1,"featured_media":7871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"footnotes":""},"categories":[54],"tags":[48,46],"class_list":["post-434","post","type-post","status-publish","format-quote","has-post-thumbnail","hentry","category-membership","tag-lifestyle","tag-travel","post_format-post-format-quote"],"_links":{"self":[{"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/posts\/434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/comments?post=434"}],"version-history":[{"count":8,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/posts\/434\/revisions"}],"predecessor-version":[{"id":7878,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/posts\/434\/revisions\/7878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/media\/7871"}],"wp:attachment":[{"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/media?parent=434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/categories?post=434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kenyabankers.coop\/wp-json\/wp\/v2\/tags?post=434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}