Glossary
What is SACCO?
Definition
A SACCO, or savings and credit cooperative, is a member-owned financial cooperative whose members save together, buy shares and borrow from the pooled funds. It is governed by an elected board and an annual general meeting, and surplus is returned to members as dividends and interest.
Unlike a microfinance institution, whose customers are clients rather than owners, a SACCO belongs to its members, who usually share a common bond such as an employer, community or profession. Loans are made to members only, often with limits tied to their savings and shares.
SACCO software has to manage members, savings, share capital, loans, dividends and governance records, not just the loan book. Many general loan systems cover only the loan side, so ask which SACCO features are standard and which are custom builds.
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