JOMO™ 🏆

I think you need to be educated on Saccos and how they work. The payslip is your collateral at the bank but in Saccos your collateral is your deposits plus other peoples deposits. Saccos allow even people with erratic income to get loans at favorable interest rates. For example I want a 600k loan from a Sacco. I must have at least 200k deposit that is my first collateral. But who covers the 400? That’s where I look for 4 friends to cover 100k each that way if you default each will pay 25% of whatever the balance is. This results to low cost of borrowing because you’re borrowing other people’s deposits and they are guaranteed by others in the Sacco. At the end of paying the loan you will still have your 200k and during that duration it will still earn you interest eg say in Stima Sacco interest on deposits is 11.5% 200k will earn 11500 in a year so 23,000 in 2 years. If you have a 600k loan payable in 2 years at 12% you will pay 677,858 so an interest of 77,858 but wait , you got paid 23,000 from the 200k so your effective interest paid is only 54,858 Bank on the other hand uses payslip as collateral then charges you high interest rates. Average bank lending rate right now is 14% and I doubt that is what they will give you. Assuming 14% rate for the 600k you will pay 91,385 See the difference? Now imagine if you borrowed 3m, 5m etc So yeah chase for those signatures.