One of the most attractive benefits of SACCO membership is access to affordable loans. These loans come with lower interest rates than commercial banks and are often tailored to meet specific member needs such as school fees, housing, or business capital. Loan eligibility is typically based on savings history, member loyalty, and guarantorship from fellow members.
To qualify for a SACCO loan, members must demonstrate consistent saving and responsible financial behavior. Most SACCOs require a minimum savings threshold and involve other members as guarantors to ensure collective accountability. This peer-based model encourages trust and reinforces the cooperative spirit.
Proper utilization of SACCO loans can significantly improve livelihoods. Whether it’s expanding a small business, paying tuition, or acquiring land, loans empower members to make meaningful investments. However, borrowing must be accompanied by planning and discipline to avoid over-indebtedness and protect the SACCO’s financial health.