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