I worked in a bank before . Every dayI could see how people are ripped off. As much as you can say banks loan are better I disagree respectfully . Try to take a loan with a bank and say yyou want to clear the loan earlier than agreed time . Do you know they will punish you with penalties for doing that, compared to sacco which is a reducing balance and no penalties . Sacco is the way to go

Lets take two ppl who commit 22k for 5years tuone.
1. A. takes 900k loan from commercial bank @16% p.a for 5years paying 22k monthly. at end of 5yrs
Total paid = 1320
Total gained = 900
Diff = -420k
2. B saves 22k in a sacco for 1yr= 264k. He takes a loan of 792k (3times shares) @12% p.a for 48 months pays 21 k monthly na ile 1k as shares to sacco. At end of five years
Total paid = 1008
Total earned ( 792+264+48) = 1104
Diff = - 4
NB:
Add on Dvdndns yearly compounded for the sacco guy.

Is there a way to factor in that year the person in the sacco takes to raise that amount, compared to the bank loan where the individual gets the same almost instantly.

I think for a home improvement or a loan for personal use the sacco will do, but for a money generating project the one year might be too costly.

Plus what happens to the shares, considering that saccos have unlimited shares for members - won't one have to sell them at a lower rate.

Saccos with the loans..!!

@nakujua as it was said up there in the first year or so months (short term) benefits are few but subsequently benefits come in full force. Now the two are at Year 6 with A having around 345k ( dvdnd @ 7.5% p.a compounded) he can access a loan of 1,035,000 @ 12% p.a compare to B now taking same 1,035,000 @ 18% p.a as confirmed avg loan rate hapo juu.If you take other saccos like mwalimu who have been giving over 10% dvdns over the years (higher than some stocks returns,insurance policies & most MMF's) you are better of putting you cash in the sacco and guarantee safety plus avg 8% returns annually. Make the calculations again with 10% returns in dvdnd and 18% for bank loan...ata kama utaongeza inflation and time value of money.....sacco guy is better mid to long term. Hope you read on when leaving a sacco what goes on...You don't have to sell @ premium unless uko na haraka saana.when you want to leave the sacco You apply and get all your deposits after like 60 days ,share capital ndio you transfer or retain which is like 5k only.
@Mawinder am sorry to say you must be ignorant ! what do you mean by practical? I have taken loans in both , i have friends and colleagues who have taken in both cases, i have sat down with brochures and made calculations concerning loans thus am talking from practical point of view. Also that 1k was a good example. what was key that huoni is that the two MUST be commiting same amount so that calculating the benefits we say they put in (invested) same amount. You can even change so that he uses 19 k on loan and 3k as shares(loan amount reduces but money at sacco increases) so long as total = 22k
I even talked of a plan of joining two saccos to enable you get a much bigger loan so that approval and guarantors won't be difficult! I say again take your time go do the maths...don't shy off ati sacco' ni za umaskini.
NB
By shares i mean total of share capital and deposits. but in the sacco threads utaona the differences