SACCO VS BANK LOANS

COMPARISON BETWEEN SACCO LOANS & BANK LOAN

 

Sacco loans do not have hidden charges and interest rates do not change over the lifespan of the Loans. Commercial bank loans have a number of motley charges some of which include:
•    Insurance fee.
•    Appraisal/ Processing Fee
•    Account Maintenance Commission
•    Accrued Interest Charges (Arrears Account)
•    Late Remittance charges
•    Premature Loan Clearance charges.

NOTE: Banks have yearly reappraisals to determine interests to charge. This implies that the interest rates can vary within the lifespan of the loan. As and when interests in the money market change (upwards), the interests on running loans are also adjusted (upwards) without notice.