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I need pros and cons of which is better between Sacco and Bank loans

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Here is a comparison between Sacco and Bank loans in Kenya to help you make a decision on which one you should choose.

Sacco vs Banks Loans in Kenya

Repayment Period

  • Sacco:  They have a short repayment period
  • Bank:  They Have a long Repayment period


  • Sacco: You need guarantors or be a member with shares to get a loan
  • Bank: No guarantors are required. Only your Payslip

Amount Given

  • Sacco: They give low amounts unless you have high savings.
  • Bank: High amount given to salaried people and businesses with regular deposits.

Interest Rate

  • Sacco: Have Low-Interest Rates
  • Bank: Have high-interest rates.

Banks are therefore ideal for established businesses and salaried people and loans are ideal for both employed and unemployed people with a saving culture or shares.

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