WHAT IS A SACCO?
ALL ABOUT SACCOS (SAVINGS AND CREDIT COOPERATIVE SOCIETIES
Meaning of a Saving and Credit Cooperative Societies or Organizations:-
A SACCO is an abbreviation of Savings and Credit Cooperative Organization or Society. SACCOs are voluntary associations where by members regularly pool their savings, and subsequently obtain loans which they use for different purposes.
Generally, the idea behind establishment of SACCOs is to promote savings and make credits available to the members.
A SACCO (Savings and Credit Cooperative) is a type of financial cooperative that is owned and controlled by its members, who are usually individuals with a common bond such as a profession, community, or employer. SACCOs operate on the principle of pooling members’ savings and using the funds to provide affordable credit and other financial services to their members. SACCOs offer a range of financial products and services, including savings accounts, loans, insurance, and investment opportunities. They are popular in many countries, especially in developing economies, as they provide access to financial services to individuals who may not have access to traditional banking services.
A cooperative society is a form of a business organization or a group of people who
agree to voluntarily associate on the basis of equality for the promotion of their
economic interests. Just like the consumer, transport, produce, and marketing cooperatives, SACCOs are also cooperatives which are financial in nature.
Saccos are both economic and social in their aims but they are primarily economic institutions which must struggle to succeed in business in order to be sustainable.
SACCOs are not-for-profit, and exist to provide members with a place to save money and get loans at reasonable rates.
Why Join A SACCO?
The SACCO movement grew out of an idea that people could work together to create solutions to meet their financial needs. SACCOs are created to enable people to pool their financial resources to help themselves and each other. Saccos are not for profit, not for charity, but for service to their members.
SACCOs must always continue to look out for their members’ interests and provide a level of service that generally is not available at other financial institutions. Whether it’s providing a loan to help a member cover unexpected medical bills, giving financial counselling to a member whose employer closed its doors, or simply offering a better deal on a used-car loan or mortgage, SACCOs make a difference for their members and the communities they serve.