which is the best financing way between these two? I heard someone say bank loans = 12% p.a while sacco loans = 1% p.m so basically the same. Need advice here? Thank you in advance.
Bank gani boss. Tuchanue
which sacco ?
Sacco all day every day …n its 1% on a reducing balance
If you have access to Sacco loan,then take it.I am not sure if there is any bank giving out loans at 12% to a person like you with huge risks.
If you have Sacco shares it would help if u don’t have shares then part of your loan will be used to grow your shares. It’s a complicated calculation…
it’s actually 7.25 p.a
all kenyan banks should give at least at 7.25% as per CBk guidelines
Exactly
Saccos also take bank loans.
Sacco is cheaper
SACCO’s are EXPENSIVE but their terms are pretty straightforward. Banks are for people with collateral.
What I always wonder with a Sacco is you borrow 3 times your savings. So assume you have 500k, you can borrow 1.5M…but out of that 1.5M, 500k is actually yours…so the risk you are borrowing is really 1M. I think it depends what you are borrowing for. Kama ni mortgare or car loan, afadhali bank. Kama its personal projects bila security, then Sacco will be easier to qualify.
They give you the whole amount,for instance in this case they will give u 1.5mill on top of your 500k but the 500k will be like in a fixed acc. You cannot withdraw it,in case you pay 1mill n u r unable to settle the rest,they’ll use your 500k to offset the remaining balance.
Wewe ni ngombe, that is the base rate. When the interest rate was capped it would have been 7.25+4.0=11.25%,but hiyo ilikunywa maji.
hakuna haja ya kuniita ngombe…
Sorry, wewe ni Kama Ngombe…