SACCO Loan Calculator
Deposits × multiplier · Reducing balance · Insurance + appraisal 🇰🇪
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Frequently Asked Questions
How much can I borrow from a Kenyan SACCO?
Most SACCOs lend up to 3× your deposits for basic loans, up to 5× for development loans, and 7× for super loans (the highest multiplier is reserved for long-time members with good standing). So if you have KES 200,000 in deposits, a 5× SACCO can lend you up to KES 1 million.
What is the typical SACCO interest rate?
1% per month on reducing balance is the most common (~12% effective annual). Some specific products: Super loans 1.2%/month, Development loans 1.25%/month. Compared to bank loans at 14-18% pa, SACCOs are usually cheaper but require you to be a contributing member first.
What are the upfront fees?
(1) Appraisal fee: ~1% of loan amount, deducted at disbursement. (2) Insurance / Loan Protection: 1-2% of loan, also deducted upfront. So a KES 500,000 SACCO loan with 1% + 1% means you receive KES 490,000 in your account. Some SACCOs add these to the loan principal instead.
Reducing balance vs flat rate — what is the difference?
Reducing balance: interest charged only on the outstanding balance each month — payments shrink over time. Flat rate: interest on the original principal for the full term — payments stay constant. A 12% pa flat rate is roughly equivalent to a 22% pa reducing rate, so always confirm which method the SACCO uses.
What if I need to borrow more than my multiplier allows?
Options: (1) Get a guarantor — co-members pledge their deposits as security, letting you exceed your own multiplier. (2) Increase your monthly contributions for 3-6 months before applying. (3) Apply for a super loan (higher multiplier but stricter requirements: usually 3+ years membership, no defaults).