Can I use SACCOs whilst in the UK?
We are all familiar with SACCOs when back at home, providing low cost credit and interest on our savings – but are these also available for Kenyans living in the UK?
We are all familiar with SACCOs when back at home, providing low cost credit and interest on our savings – but are these also available for Kenyans living in the UK? Kenya Matters approached Rose Mogoi – Marketing & Recruitment coordinator from Stoke Diaspora Sacco to understand the options for Kenyans abroad.
Many Kenyans wouldn’t know there are Saccos in the UK – what is the advantage of a SACCO versus a UK bank or finance company?
“There are 3 core reasons for borrowing and saving with a SACCO
- SACCOs have lower interest rates compared with commercial banks.
- As a member of the SACCO, you earn interest on your savings which are part of what you have borrowed lowering your borrowing costs further.
- While repaying a SACCO loan, a member is expected to still maintain the same level of monthly savings as they did before. This builds a saving discipline, and helps one accumulate a substantial savings base” says Rose Magoi.
“Also, unlike commercial banks, you can repay earlier. No interest or penalty is charged for clearing a loan earlier than the contracted period. The interest to pay will be lower because the interest is based on reducing balance.”
Is it difficult to open a SACCO account in the UK?
Rose Magoi “No it is relatively straight forward as long as you:
- Are a Kenyan over 18 years old and in gainful employment
- Have good moral character and sound mind
- Pay a registration fee of Kshs 10,000
- Buy a minimum of 10 Investment capital shares worth a total of Kshs 100,000
- Maintain monthly minimum Savings contributions of Kshs 10,000.
After 6 months, you can then borrow up to 4 times the amount you have in your Main Savings Account, provided you provide a form of security. Members can borrow up 80% of their savings and shares without needing an extra security which can include: their shares above the minimum Kshs 100,000, their deposits, title deed, debenture on stock or securities or even the shares and deposits of one or more guarantor(s).We offer a wide selection of loans including:
- Personal Loan
- Business Development Loan
- Land/Property Loans
- Emergency/Instant Loan
- Top up Loan”
OK so I can see some real advantages – how do readers find out more and set-up an account?
“It’s really simple, they:
Complete the form on https://www.stokeukdiasporasacco.com/join-us/
Provide a copy of Kenyan ID or Valid Kenyan Passport, a coloured passport size photograph and pay the Non-refundable registration fee of Kshs. 10,000
Once their membership is live, they need to purchase the minimum 10 shares each worth Kshs 10,000 totalling Kshs 100,000 within six months of joining. Maintain their monthly savings of at least Kshs 10,000. Aim to purchase at least 1 investment share each worth Kshs 10,000 every month.”
They can get in touch by phone, Whatsapp, email or webform – if they have any queries – the contact details are here: https://www.stokeukdiasporasacco.com/contact/”
Thank you Rose, I am sure plenty of our readers will be in touch.