Tips on Choosing the Best Sacco in Kenya

sacco in kenya

Finding the right Sacco in Kenya – one that aligns with your goals – is essential for your financial growth and the safety of your money. It is, therefore, vital to do your homework beforehand to ensure you’re settling for the best deal.

But of the many options available, how do you find the best Sacco in Kenya?

There are no hard and fast rules for this, but the right Sacco for you is the one whose products and services resonate with your needs.

Here are some tips on choosing the best Sacco in Kenya:

Fees and rates

If you’re keen on getting a one-stop-shop, take the time check the interest rates that you would earn on deposit accounts and the rates you would pay on loans. Use this information to filter the options that you have. Trusted Saccos in Kenya publish the fee schedules and rates on their websites, so it shouldn’t be hard to compare. If you can’t find the information online, you may call their offices.

Saccos tend to have higher annual percentage rates on savings accounts and lower fee schedules than traditional banks. Those that operate virtually offer even better terms since they do not incur overhead charges that come with having numerous physical branches.

Related: How to Open a Savings Account that Enables You to Borrow against Your Savings

Must-have technology

With the busy lifestyle, you may not have time to step into a branch, let alone wait on the long queues to make deposits or withdraw money. Therefore, you may want to consider a Sacco that integrates technology into their systems so you can do your transactions on the go. Checking for must-have features – like the automatic savings plans, budgeting tools, security measures, and the ability to transfer funds quickly to family or friends – can assist in narrowing down your list.

Physical location

The simple fact that you’re looking for convenience doesn’t mean it’s okay to work with a virtual Sacco that has no physical office. Remote banking is an added advantage. So, before you join a Sacco, conduct extensive research about them. Check how reliable they are – you can do so by visiting their premises and verifying their licensing and registration documentation. Any reputable Sacco will offer or display their certificates.

Note that there are two kinds of Saccos in Kenya: the Front Office Services Activity (FOSA), and the Back Office Service Activity (BOSA) Saccos. Whichever type of Sacco you settle for, you should ensure that it’s registered, licensed, and regulated. The Sacco Societies Regulatory Authority (SARSA) governs all FOSA Saccos. The Commissioner of Cooperatives under the Ministry of Industry, Trade, and Cooperatives on the other hand, controls the BOSA Saccos.

Read reviews

In the internet era, it’s impossible for an institution to get away with bad practices. People will flock online to express their frustrations and anger in case they have a bad experience with a provider. They’ll show gratitude if they’re pleased with the services too. So before you sign in to a Sacco, spare some time to browse online for customer reviews and find out what the past clients are saying about them.  Here, you’ll see the good and the bad side of the institution. The information will help you in making an informed decision.

Websites which are committed to customer reviews in the banking and financial industry can also offer incredible insights. Since the Sacco doesn’t influence the reviews, you can be sure that the information is accurate and true.

The safety of your money

You want to have insurance for your money, the same way you do for your home, your car, and your health. It is, therefore, crucial to find a reliable Sacco in Kenya that’s registered, insured, and regulated. This way, you’ll be sure that your money is safe and that your investment is worth the while. You don’t want to wake up one morning, only to find out that the institution is bankrupt.

Ask for referrals

The easiest way to find the best Sacco in Kenya is to ask the people within your circles – like your family, friends, neighbours, and colleagues. You’ll be surprised by how many people are saving their money and applying for loans with Saccos. People in your cycles will give you an unbiased opinion regarding a Sacco, which is what you need.

All the Payday Loan Questions Answered

payday loan

Sometimes, even the most prepared people may find themselves in a cash crunch. Financial hitches can be as inescapable as they are upsetting; this is why it is essential to have the backup of a mobile payday loan.

Surveys indicate that although Kenyans do an incredible job of maintaining their finances, they will need occasional help. A higher percentage of them are going for the payday loans to bridge a short-term money deficit or to cover for unplanned expenses that may arise before the next payday, without incurring rotating debt.

The best payday loan lenders in Kenya provide mobile apps that allow for painless loan application process. These apps are user-friendly, easy to navigate and automated, and make it flawless for one to get their loans, fast.

This article covers the wide-ranging question that people frequently ask about payday loans.

How often should one use payday services?

A payday advance is a short-term remedy to an emergency need that crops up between paydays. It is by no means a long-term solution for continuous finance management. One should not use the payday loans on a frequent or ongoing basis because it can result in serious financial hardship.

Are mobile payday loans confidential?

Most people prefer keeping their financial information a secret, and the lenders understand this fact too well. As such, they guarantee 100% confidentiality in all transactions. Some applicants raise concerns about their references finding out about their financial situation, but this should not be a cause for worry. The best payday loan providers in Kenya will only call the reference to confirm whether the provided numbers are valid. Financial institutions respect the client’s privacy desire in handling their financial matters.

How do lenders determine a payday advance amount?

Loan amount largely depends on a person’s current income. Sometimes, a person may get as much as they would like. However, it is not always helpful to request for more than one can comfortably repay. Payday loans come handy during emergencies, to cater for the unexpected costs, and can suffice a financial hardship between paydays – but it should be used responsibly as part of a short-term plan.

Why do financial organizations provide a lot of information in the agreement?

The customer agreement serves as a contract that binds the two parties. The contract indicates the terms of the transaction, including the fee for the service in cash and as an APR (annual percentage rate). It serves to bind the two parties and cut out any surprise element that may arise later on.

What happens when one does not have funds to repay the loan on their due date?

Just like clients, lenders hope that this does not occur. However, in case it does, the best payday loan lenders in Kenya are devoted to collecting the loans in a fair, professional, and lawful way. If the lenders try to debit an account and it bounces because of insufficient funds, clients may be eligible to pay the returned item fee as stipulated in the contract. Most lenders will charge non-sufficient funds (NSF) fee for the returned check and may even withdraw the checking account privileges from the client.

Does one face criminal charges if they do not pay their payday loans?

Reputable payday loan lenders in Kenya will not press criminal charges against a client due to unpaid funds; however, if they become negligent, the lender will bar them from getting another loan. Other actions may include reporting the client’s account information to the credit bureaus, referring the case to a loan collection agency, or using other legally acceptable means to collect the funds due.

What if one is dissatisfied with the solutions rendered?

Trusted financial institutions strive to offer professional and friendly customer support solutions to guarantee satisfaction. Nevertheless, if an issue arises with the payday loan, it is advisable for one to contact the company and have them address the concern. In the unlikely event that the two parties fail to resolve the dispute, agreement contracts provide that one can request arbitration or take the issue to small claims court where a neutral third party can help to make a binding decision.

Can someone pay his or her Payday loan early?

Yes. Be sure to talk with the service providers to arrange for the early payoff.

Need Funding for Business? Here’s What to Know Before Applying for a Loan in Kenya

loan in kenya

When you need a loan for your small, medium or large-sized business, it’s highly likely that you’re willing to take the first deal that comes your way, but don’t. Taking time to analyze your needs, plans and the potential lender will help you settle for the best loan in Kenya.

If you’re just getting started with loans, you might find it challenging to know the right questions to ask yourself, let alone the service providers. This article comprehensively covers everything you need to know before you apply for a loan in Kenya.

Understand why you need a loan for your business

There are unending reasons to borrow a loan in Kenya for your business. You might want to boost up your inventory, expand your physical location, do some renovations or marketing, help with recurring expenses or pay employees. You also might need money to serve as a cushion for a rainy day. Whatever your reason is for considering a loan, ask yourself:

  • Will the money help your business grow? For instance, if you borrow Sh. 100,000 for paying employees, your credit won’t generate more revenue, meaning you could still be in the same situation a few months down the line. If you put the money where it can grow, then you’ll realize more profits with time, and help minimize future borrowing needs.
  • Do you have an adequate cash flow to settle the loan? Most lenders will want to see a cash flow that’s at least triple your debt payment requirements. If they realize that you might have problems making payments if one of your clients pulls out, that’s likely to scare them away.

Related: four steps to make the most of your credit

Consider how much money your business needs

This might seem obvious, but you’ll be surprised by how many business people end up borrowing way more, or even less than they initially thought they needed. So, the second thing you should do is to take a pen and paper and write down all your needs, against the cost. This will help you come with an ideal figure, which is essential for two reasons:

  • Knowing how much you require will assist you in finding a provider who’s capable of financing your needs. Some will only give you a fraction of what you need, which will be too little, and won’t be worth taking. On the same breath, taking more than you require will mean bigger payments, which might strain you at the end of the day.
  • Having the ideal figure in mind will guide you in borrowing what you need; it removes the guesswork from the picture. This way, you won’t take less or more than what your business requires. Besides, with everything written down, you are aware of how you’re going to use the money, and it will serve as a guide for careful spending.

Analyze the cost of the loan

Once you’ve figured out how much money you need for your loan in Kenya, the third thing is to know how much it will cost you – or the interest. The market presents hundreds of options when it comes to money lending, but only a few will give you value for money. The hard part is finding the “few”.

Borrowing smart is the way to go; don’t go into it with your eyes wide shut, blinded by the excitement of what you’re getting. Debt isn’t bad, ignorance is. Here’s how you understand the real cost:

  • In addition to your potential interest rate, ask your lender about the Annual Percentage Rate (APR) for the loan. The APR includes all the extra charges – like the accounts, loan processing, and origination – and will give you a more accurate quote of what you’ll pay.
  • Ask if there are any prepayment penalties or extra costs. With this information, you’ll know whether or not your business can comfortably pay back the loan that you’re planning to take.

Find out about the payment terms

The good thing about loans is you can repay over a period. Before you commit to one, you should always be aware of its terms (how long the loan will last and its features). Top providers of quick loans in Kenya are flexible and allow repayments from 2 days up to 48 months. It’s best to know what you prefer before settling into a deal. You can:

  • Find out if the interest rate is floating or fixed. Floating interests fluctuate with the financial market, whereas the fixed one doesn’t change regardless of the market.
  • Consider if the term you’re interested in uses compound interest (CI). With CI, the interest amount is added to the principal borrowed amount periodically. Find out if you’ll incur any penalty for early repayment. If there isn’t, and the loan is using CI, then you can pay up the full amount sooner to save up.

Establish how soon you need the loan

If you want a quick business loan to boost your stock in a high sales period, or to cater for an emergency need, you’ll pay more for the convenience you’re getting. Fast cash is a bit more expensive than those that take longer to materialize. Prior to settling for a deal:

  • Analyze your business needs. Can the investment wait, and for how long? Is it an emergency? With the answer in mind, you’ll know what to settle for.
  • It’s also important to know who you’re working with. Some lenders will want to squeeze you dry because they know you need the money. You can opt for SACCOS which are highly regarded for helping in such situations.

Related: how to open a savings account that enables you to borrow against savings

Always ensure that you are well-versed with all that goes into the process before you resolve to take a loan in Kenya for your business. Big funds with minimum interest sound incredible, but if you can’t qualify, then it isn’t the right loan for you. A business loan is just about matching your needs with your options. Best of luck.

6 Ways a Quick Online Loan Can Help In Emergency Situations in Kenya

fast personal loans in nairbi

Financial hardships, like losing a job, medical emergencies, bills, bereavement-related expenses and other living costs can occur at the worst time and when you least afford them. Securing a quick online loan in Kenya for such unplanned expenses can help get you back on your feet.

If you are like many middle-class Kenyans, you are likely to plan for different expenses in your life; from how you’ll pay your children’s school fees to how you’ll pay for a car or a home and so on. You also might have some little money set aside for miscellaneous. However, when emergencies or unplanned situations that require a considerable amount of money up front hits, you may find yourself in a monetary crisis.

While the saving fund could cushion part of the emergency costs, you might still need some money to offset the outstanding balance. In such cases, getting a quick online loan in Kenya to stem the tide will relieve you the stress. Personal loans provide incredible payment periods and interest rates, which makes them the most convenient and affordable way to borrow.

Unlike bank credits, online personal loans are easy to apply, and not as involving. They avail forms that only include essential details to gauge your compliance and suitability. If you pass the checks, your loan approval process could happen in minutes. Here are 6 ways a quick online loan in Kenya can help in emergency situations:

Car Repairs

Car repairs occur to everyone. You’re going about your daily routine, spending within your financial limits, and viola, an emergency repair strikes – hard. According to consumer reports, repair charges amounts to 4% of the annual cost that owners pay to get the vehicle. It doesn’t matter if you’re riding an inexpensive car, you still could be looking at tens of thousands shillings per year in repair and maintenance cost. Some common emergencies that might get you flat footed are replacing the spark plugs, dead battery, fixing brakes, which can quickly increase beyond your budget.

Medical emergencies

When sudden illness or injury happens, and you don’t have cash on hand, a quick online loan can suffice the situation. Yes, you might have insurance and all, but it may not cover your medical needs. Dental procedures, infertility treatment, hair loss restoration and replacement and weight loss surgeries might not feature in the insurance list, meaning you’ll have to deep into your pocket. Besides, some insurance only covers a certain percentage of the entire medical cost. A simple loan can help you take care of the rest.

House and office rent payments

Financial struggles like the emergency medical bill, car repairs, and job loss can eat into your rent. Unfortunately, most Kenyan landlords wouldn’t want to hear about it, and you risk being slapped with an eviction notice. Although you’re in a tight spot, you still need to figure out how you’ll pay rent, on time. This is where quick online loans for rent come in. You can browse online for reputable and legitimate online lenders committed to offering people with emergency loans at low rates.

Starting a side business

With bills skyrocketing by the day, you need a side hustle to keep you afloat. The money you get from your job can’t be enough to take care of all your expenses, let alone invest in a business. This is why many working class folks are opting for a second income stream. The only problem then becomes getting the initial capital. If you find yourself in such a situation, a personal loan could be the answer you’re looking for.

Create an emergency fund

In situations where a quick online loan in Kenya is the only thing standing between you and bankruptcy, then it makes total sense to ask for money. Rather than waiting until an emergency arises, consider taking a loan that provides you with enough repayment periods while you establish your savings. For better deals, it’s advisable that you do your due diligence up front, instead of trying to do so when you’re pressed for time.

Utility bills

When you’re having financial issues, you might find it hard to pay your electricity and water bills. These bills quickly add up. Failure to pay might mean a disconnection, and once you are disconnected, you’ll have to incur additional reconnection costs. Getting a quick online loan in Kenya can help you avoid those circumstances.