How much dividend am I entitled to earn from my shares?
There is no fixed amount. Get the amount you have on your shares and divide it by the amount of the total shares in the SACCO. Multiply the result by the amount of dividends proposed for the year.
Why is it important for me to attend the Annual General Meeting (AGM) ?
The AGM is an important gathering which gives you an opportunity to enjoy the following rights, duties and opportunities;
i. You get an opportunity to speak out your views and concerns
ii. It is where resolutions by members are passed so you will get awareness regarding SACCO policies.
iii. It is at the AGM where you have the opportunity to elect leaders or be elected as a leader
iv. You meet other members at the AGM and this gives you an opportunity to know your fellow members and therefore know the individuals you can co-operate with regarding SACCO matters
v. It is a gathering where you can get general awareness about SACCOs because various invited speakers always give guidance regarding SACCOs
As a member how do I benefit from buying shares?
The importance of shares is summarized below;
The only way you are recognized as a member is by buying the minimum required shares
All monetary benefits currently shared among-st members at the end of the year are shared according to how much you have as shares.
You should however remember that giving dividends on shares is not the main objective of a SACCO. The main objectives are saving and taking loans for developments. That is why dividends in SACCOs are not given top priority.
What are my responsibilities as a loan guarantor?
When the borrower does not pay the loan, the SACCO usually seeks the help of the guarantors to see how the borrower can be compelled to pay. When the borrower completely fails to pay, it is the responsibility of the guarantors to pay. The only exception is when the failure to pay is a result of an insured occurrence.
Apart from my normal savings, why am I advised to also have a sight savings account?
The reason is that it is a bit more expensive to withdraw money from your normal savings account. If you have some money that you think may be withdrawn soon, it is better to save it on the sight account where the withdraw charges are very low.
If I pay my loan earlier than the scheduled period do I save anything?
Currently this applies to loans whose repayment period is beyond twelve months and the specifics are as below;
i. For a loan that is payable within 24 months, if it is completely paid before the 13th month, the entire interest of the second year is waived.
ii. For a loan payable in 36 months, if it is completely paid before the 13th month, the entire interest of the second and third year is waived.
iii. For a loan payable in 36 months, if it is completely paid before the 25th month, the entire interest of the third year is waived.
