The role of informal microfinance institutions in saving
The role of informal microfinance institutions in saving
The role of informal microfinance institutions in saving
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4.1.10: General Services.<br />
Respondents were asked to state whether they agree or disagree with a series <strong>of</strong> statements<br />
describ<strong>in</strong>g the quality <strong>of</strong> SACCO’s services. In response to these statements, 75% <strong>of</strong><br />
respondents said that SACCOs are friendlier than banks, and that SACCOs are more<br />
conveniently located.<br />
4.1.11: F<strong>in</strong>ancial Services.<br />
A high proportion <strong>of</strong> respondents (70%) agreed that “SACCOs do not <strong>of</strong>fer many <strong>of</strong> the<br />
f<strong>in</strong>ancial services that they need,” although it may be that <strong>in</strong> agree<strong>in</strong>g with this statement,<br />
respondents were express<strong>in</strong>g a general frustration with the economy and their own economic<br />
situation, <strong>in</strong> addition to their dissatisfaction with SACCOs f<strong>in</strong>ancial services.<br />
Some respondents are satisfied with the lend<strong>in</strong>g services <strong>of</strong>fered by their SACCOs. 68% agree<br />
that it is easier to get loan from their SACCOs than from a bank, and that SACCOs require less<br />
collateral than banks. 70% agree with the statement” SACCOs always have enough funds<br />
available to make loans. Only 29% <strong>of</strong> respondents agree that SACCOs take a long time to<br />
approve and give out loans”. Or that “SACCOs frequently do not have enough money <strong>in</strong><br />
hand to make a loan so the member has to wait”.<br />
If SACCOs are <strong>in</strong>deed <strong>of</strong>fer<strong>in</strong>g competitive lend<strong>in</strong>g services relative to other f<strong>in</strong>ancial<br />
<strong><strong>in</strong>stitutions</strong>, then it is up to SACCOs to make sure that both the current membership and<br />
potential members are aware <strong>of</strong> this fact. Individuals who are attracted to Sacco’s membership<br />
as a result <strong>of</strong> superior lend<strong>in</strong>g services are also depositors.<br />
4.1.12: What Members like Best about SACCOs?<br />
When respondents were asked what they like best about their SACCOs, more than 60% cited<br />
the high quality <strong>of</strong> lend<strong>in</strong>g services <strong>of</strong>fered by their SACCOs. Specifically, members commented<br />
that it is easy to get a loan from the SACCOs when an <strong>in</strong>dividual meets loan requirements, and<br />
that the repayment period is long enough to allow members to be able to pay <strong>of</strong>f a loan.<br />
30% <strong>of</strong> respondents said that they most appreciated their SACCO’s fast and friendly service,<br />
convenient location and convenient hours <strong>of</strong> operation. 7.8% <strong>of</strong> respondents appreciated the<br />
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