SACCO LOANS?

Whereas sacco loans are preferable to bank loans,my only problem is that u end up paying interest on ua own money. E.g if u av saved,say 100k with ua sacco,u could borrow 300k and pay interest on the whole amount. Meanwhile the 300k is inclusive of ua own 100k. Why dont they devise a system whereby u pay interest on only 200k since the other 100k is surely ua money and the loan is guaranteed by ua guarantors?


NEVER HONOUR A PROMISE THAT PUTS YOU AT A DISADVANTAGE!!!

Again,I would recommend Sacco .The interest rate on My Sacco,Mahasibu Sacco is 12% P.a.

I joined it after being recommended by Sk members.

I'm just about to destroy my barclays credit card which now has zero balance.I was forced to pay (874 ) in interest to access Kshs 7000/= despite paying all the dues before due date.

With 7000 in my sacco,I would have accesed 21,000/= and paid interest of only 210 /= in that month

This illustrates that there is a very thin line between kenyan banking and shylocking.

be wary of bank loans and to be particular,Barclay loans.

@ Njung'e.....The 100k in my BBK a/c will be accessible to me anytime so i wont pay interest on it and after i get the 300k loan i will effectively have 400k. However the 100k in my SACCO will be in form of shares therefore inaccessible to me. So the 300k sacco loan will effectively remain 300k and my shares worth 100k is part of the loan and will therefore pay interest on it......Am i communicating???

NEVER HONOUR A PROMISE THAT PUTS YOU AT A DISADVANTAGE!!!

@Mwenza,little knowledge is much more dangerous than no knowledge at all.

Facts:

1. The sacco deposit/saving is your money which you recover when you decide to quite the sacco. It is the amount that earns you dividend (in many saccos);

2. The deposit amount is used as security and to gauge the max amount you can borrow. Many sacco's will lend x3.

3 The interest you pay is quite predictable and no hidden 'small prints' to surprise you at a later date. A good portion of the interest you pay will come back to you in form of dividends.

These said,sacco loan is the most predictable,transparent and almost 'zero-cost borrowing' when dividends are factored in.




Life is worth living cos God planned it to be so.

nice stuff; <br><br>
now,i have a 4-yr loan with stanchart and I have re-paid for 2 years already..

Can i spread the remaining balance so that it becomes a 4-yr loan,without having to top up,and with no or minimal expenses? any trick out there?

this would incur less interest per month...

then i would accelerate the payments by paying lumpsums every month.

none

@extrablessed; You took the words out of my fingers!!!!

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

mwenza,you sound like another kenyan bank that just lost a lot of business on sk.

@mwenza,

No need to tease Extra-Blessed over a small typo.Everyone does it once in a while and it ain't a crime and hey...... am no genius...!!.......Second,she gave you facts as they are.Besides,your loans and shares in Saccos are secured.Your savings do not attract commissions and service/maintenance fee.The minimum deal you get from your savings in case of demise is;

1.All loans written off unconditionally.

2.Your shares doubled and shared out to your beneficiaries.

In case of loss of job or business,your loan can be re-scheduled at/for your convinience....and in certain cases,a grace period of 6 months is granted.All this at no extra cost.

Current average loan interest rates is 12%,devidend payout of as high as 11% on you savings and the only money the government gets is 5% withholding tax on devinded.Loan processing fee is pitiable and insurance stands at about 1800 bob per year for all your money......this fee is payable once or on 12 instalments....huh..!....To add a little,

i do not know of a bank where i can walk in,ask for 100K unsecured short term loan,have it processed inside 30 minutes and i hit the street.Beauty is,i repay 50K plus interest at the end of the first month and if i clear the balance inside 30 days,the remaing 50K attracts no interest and .....yeees......!!.....I move to the next counter and i can ask for a further 100K.All this in the same hour.

......Now,try that with any bank ..........Did i hear you scream murder?.

@Nanfor,

For your write-up,the following rural saccos should interest you;

1.Kilifi Teachers.

2.Maua Sacco.

3.Kiambu Farmers.

4.Nyeri Teachers.

5.South Imenti Growers.

There must be many more out there especially in the big towns and i believe you will be dazzled by the number of available cheap products.





Yombo dhier....!!

@ nanfor........i would rather die fighting for my rights than live forever without any rights!

NEVER HONOUR A PROMISE THAT PUTS YOU AT A DISADVANTAGE!!!

@ All,

I like this post and it is quite informative. Thank you all.

Let's think a little bit outside the box,or better still without the box.

If you need a 500,000 loan from a bank and may be you can qualify for a 700K or even 1M,how about getting the 700K,use the 500K to meet your needs and buy the bank's shares with the 200K balance,(if at all the bank is doing well on the stock market),and keep trading with that amount for the period you'll be servicing the loan? Am sure you'll have made gains over and above the interest to be charged on that loan.

Ama?


today is the day to act,don't say tomorrow