Dar Es Salaam, Tanz - SNHU Academic Archive - Southern New ...

96their savings. If the sum is less than the loan granted should be a top-up in order to reacha ceiling equivalent to 3 times of their savings.4.1.2.4 Loan InterestEvery SACCOS have the responsibility of charging interest affordable to its membersbut at the same time, in order to grow and expand, it have to charge a competitiv einterest rate that can realise a surplus to be distributed amongst its members throughdividends. Cooperative society Rules made it clear in article 75(1) by stating that;'A savings and credit cooperative society, in this part referred to as a credit society, issolely dedicated to the promotion of thrift among its members and the creation of asource of credit for them at competitive rates of interest through financialintermediation'.This article conforms to Para 3.2.1 o f National microfinance policy, 2000 that stated thatpricing is one of the most important determinants of the potential of the microfinanceservices t o becom e sustainabl e an d the price s shoul d be se t b y the microfinanceorganizations themselves, not by the government, the Bank of Tanzania or donor.Article 97(1) of the Coop , society Rules states; 'The interest on loans by savings andcredit cooperative society shall be fixed by the general meeting: Provided that thegeneral meeting may delegate its powers to the Board to establish the interest rates forloans depending on the prevailing market conditions '.