Most Sacco Interest Rates in Kenya range between 10% per annum to 14% per annum.
RG Sacco Ltd offers loans at only 1% interest rate per month. This means that if you take a loan of Kshs. 10,000/- you are charged Kshs. 100/- only as the loan interest per month. If one takes a loan of Kshs. 100,000/- the interest is Kshs. 1000/- only.
RG Sacco offers business loans to its members to boost their businesses. Ideally, loans are not bad if used for the intended purpose and can be the bridge between a small business to a mega enterprise.
To see how much installments you can comfortably afford, see the loan calculator.
Click here to apply for an emergency loan or Mobiloan
RG Sacco Ltd like other financial institutions create customer profiles to gauge the creditworthiness of a member before giving him credit. Nowadays we are moving away from over-reliance on collateral to character.
Character is demonstrated by how you save. Do you have discipline when saving, do you skip some days or weeks or are you consistent? Character is also demonstrated by how you handle money including ability to pay other lenders. Do you pay your debts on time eg credit cards, or even rent.
Ability – Do you have the ability to repay your loan comfortably depending on the financial condition of your business.
Purpose: you need to come out clearly on how you intend to use the loan money. You should never divert money to other use, but should strictly stick to your plan.
Amount: Borrowing should always be budgeted for, and carefully planned. For example, your business project may be requiring 20,000 but because you qualify for 30,000/- you end up asking for the full amount. This means the extra 10,000 may go into waste or impulse spending.
Repayment: You need to discuss with the credit manager how long the loan repayment will be and amount and frequency of installments. For example the best repayment for businesses is either daily or weekly. Most small and medium businesses are unable to repay monthly due to many bills which must be paid each month end eg rent, salaries, water, electricity etc.
Insurance: This usually comes in handy incase of permanent disability or death.
Finally, remember the golden rule in micro-finance: Save regularly, borrow wisely, pay promptly.
If you want to apply for a RG Sacco Ltd Loan, click here for the Loan Application Form.
What is a Sacco Interest Rates in Kenya?
Sacco interest rates in Kenya refers to the percentage charged by the sacco on the principal amount of loan borrowed. It represents the cost of borrowing money and is typically expressed as an annual percentage rate.
Loan interest rates can vary widely depending on several factors, including:
- Type of loan: Different types of loans, such as personal loans, home loans, auto loans, or business loans, may have different interest rates based on the specific risks and market conditions associated with each type.
- Creditworthiness: Your credit history and credit score play a significant role in determining the interest rate you are offered. Borrowers with a higher credit score generally qualify for lower interest rates, as they are considered less risky by lenders.
- Market conditions: Interest rates are influenced by the prevailing market conditions, including factors such as inflation, central bank policies, and overall economic stability.
- Loan term: Shorter-term loans may have lower interest rates compared to longer-term loans.
- Collateral: Secured loans, where collateral is provided, may have lower interest rates compared to unsecured loans, as the collateral provides a form of security for the lender.
It’s important to note that interest rates can be fixed or variable. Fixed interest rates remain the same throughout the loan term, while variable interest rates can change over time based on market fluctuations.