Kenyans are staring at high loan interest rates after the Central Bank of Kenya (CBK) raised the benchmark lending rate by 0.75%.
CBK says that the raising of the rates from 7.5% to 8.25% is geared at cushioning against increased inflation risks both on the domestic and global scene.
However, you need not worry, Savings and Credit Co-Operative Society (SACCO) is the best way to get cheaper loans.
SACCOs don’t adhere to the CBK rules.
The Sacco gives low interest rates as shared below.
Normal and emergency loans are priced at 6.5% per annum.
Emergency Loans assists existing members who have emergency need for funds. The effective interest rate is 6.5%, maximum repayment period is twelve months
Whereas, Normal Loan assists members who have development projects to undertake. The effective interest rate is 6.5%, maximum repayment period is thirty six months.
One needs to become a member first.
The sacco has been in operation for over 40 years and has expanded to provide savings and loans services to Kenyans from a diverse walk of life.
The Sacco which started as Teachers’ only financial institution expanded to accommodate members from Government Ministries, Parastatals, Kenya Defence Forces (KDF), National Police Service, Public and Private Universities, Colleges, Academies and the private sector among others.
Therefore, the following can join the Sacco
- Salaried People
- Non Salaried People
- Business Entities
The membership requirements are as follows: One needs a passport photo, a copy of your National Identification Card, pay Sh 1000 membership fee, produce a recent payslip for the employed.
One is also required to fill out a membership form which can be downloaded from the Sacco’s website or taken from the Sacco’s offices in town
Metropolitan is regulated by the Sacco Societies Regulatory Authority (Sasra), with which it discussed with, its growth strategy anchored on diversification, customer service excellence and developed products.
The two loans can be accessed by filling forms in the branch.
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