Hello 👋 my fellow bussiness people. Did you know there's a big difference between loan from a Sacco and a bank ? Below 👇 is a summarised article go through it and ask questions where you don't understand. Tuendele kujengana 💪

While both banks and SACCOs (Savings and Credit Cooperative Organizations) offer loans, SACCOs are member-owned, community-focused, and often offer lower interest rates and more flexible terms, while banks are profit-driven and have a wider range of financial services. Here's a more detailed comparison: SACCO Loans: Ownership: Member-owned and democratically controlled. Focus: Serving members' needs and community development. Profit: Profits are reinvested to benefit members, potentially through lower interest rates or better services. Interest Rates: Typically offer lower interest rates compared to banks. Flexibility: May offer more flexible repayment terms and loan purposes. Collateral: May require less stringent collateral requirements. Regulation: Regulated by the Sacco Societies Regulatory Authority (SASRA) in Kenya. Bank Loans: Ownership: Owned by shareholders and operate to generate profits. Focus: Profit-making and providing a wide range of financial services. Profit: Profits are distributed to shareholders. Interest Rates: Interest rates can vary widely depending on market conditions and the borrower's creditworthiness. Flexibility: May have stricter lending requirements and less flexible repayment options. Collateral: Often require collateral and have more rigid approval processes. Regulation: Regulated by the Central Bank of Kenya.