Contributors who ignored their SACCOs and rushed to borrow money from banks are now experiencing financial constraints due to the high interest rates the loans attract.
The Secretary of Sauti SACCO, Mr. Francis Ngila, explained that while SACCO loans attract only 12 per cent interest rate per annum on a reducing balance, those from banks fluctuates between 20 and 25 per cent.
Mr. Ngila who was addressing Sauti SACCO members Kisii branch on Sunsay, implored the members to borrow money from the SACCO since the society offers loans which are customer friendly.
He also urged the members to increase their monthly contributions in order to be able to borrow more money from the SACCO.
“You should save for the future and not necessarily for borrowing purposes but also to earn more dividends,” Mr. Ngila urged.
He also disclosed that the SACCO offers several loan products which include Development, Education, Instant, Emergency, and ‘Angasa’ loans.
Mr. Ngila noted that the society has achieved milestones by leaping from a non dividend paying SACCO a few years ago to 10 per cent dividend payout level three years ago.
He also pointed out that the three year refund backlog on members’ deposits has been reduced to two months within the same period.
“The one year backlog for development loans has also been similarly reduced to a waiting period of two months,” he observed.
Mr. Ngila assured members that the SACCO’s kitty has soared from Kshs.131 Million in 2012 to Kshs.166 Million in 2015.
He attributed the growth to the introduction of monthly contribution of seven per cent of the basic salary of each individual member to the SACCO in 2013.
(Sauti SACCO Secretary Mr. Francis Ngila extreme left addresses the Kisii branch society's members, he has called members to ensure they borrow from the sacco to avoid financial constrains)