Fixed Deposit
Since Mchinji Civil Service SACCO offers a fixed deposit at 10% annually, but the rate is negotiable, this means that members can potentially secure a higher interest rate based on factors such as:
Deposit Amount: Larger deposits may qualify for a higher interest rate.
Deposit Duration: Longer-term deposits might earn better rates than short-term ones.
Member Loyalty: Long-standing or high-contributing members could negotiate for improved terms.
Market Conditions: If other financial institutions offer higher rates, the SACCO might adjust its offer to stay competitive.
Special Agreements: Corporate or institutional members may negotiate custom rates based on their financial contribution.
Material Loan For Non-members
A Material Loan for Non-Members is a short-term credit facility provided by a SACCO or a financial institution that offers both cash and tangible materials (such as equipment, farm inputs, or construction materials) to individuals who are not registered SACCO members. These loans are designed to help non-members meet urgent financial or material needs while ensuring repayment within a short period.
This type of loan helps individuals access necessary resources without requiring SACCO membership, making it useful for small business owners, farmers, and self-employed individuals.
Non Reedemable Shares
Non-redeemable SACCO (Savings and Credit Cooperative Organization) shares are permanent shares that members purchase in a SACCO. Unlike redeemable shares, they cannot be cashed out or withdrawn at the member’s request. Instead, they remain as part of the SACCO’s capital until the member decides to transfer or sell them to another member or when they exit the SACCO under specific conditions.
Permanent Capital – These shares contribute to the SACCO’s long-term capital base and cannot be withdrawn like regular savings.
Transferable – If a member wants to leave the SACCO, they may have to sell or transfer their shares to another member.
Reedemable Shares
Redeemable shares for SACCO (Savings and Credit Cooperative) members are shares that can be bought back or repurchased by the SACCO at a later date under specific terms and conditions. These shares provide a way for members to invest in the SACCO while maintaining the flexibility to withdraw their investment when needed
Ownership & Membership – Members who purchase redeemable shares become part-owners of the SACCO with voting rights, depending on the SACCO’s bylaws.
Dividend Earning – Shareholders receive dividends based on the SACCO’s profitability and the number of shares held.
