Savings And Credit Cooperative Societies (SACCOS)
A SACCOS is a small, local cooperative society which accepts savings and makes loans to members. These were once common in the Western world, but have largely been replaced by full-service banks. In Tanzania they are providing the financial services that are lacking in most areas.
Iringa Hope SACCOS are all locally owned and managed. They belong to an umbrella organization called the Iringa Hope Joint SACCOS. This organization provides training, education, and oversight of the local SACCOS. The Iringa Hope SACCOS maintain an excellent record of financial management with 100% of our SACCOS passing their annual audits, receiving the highest ratings by the Tanzanian Cooperative Society Board, and with over 98% of all loans repaid
A SACCOS is a local microfinance cooperative.
- It is run by elected officials
- It provides a place to save money and to get loans
- It is open to all villagers
- Borrowers must first save money to join
- After savings, they get loans for income-generating projects
- All loans are guaranteed by groups of 3
- Typical loans are for $150 – $500 for 6-9 months
Over 5 years a $500 loan will:
- Generate $4,980 in family income
- Pay for 7 years of secondary school
- Allow the family to upgrade or build a new home
- Improve family nutrition and health
At the end of 5 years:
- There is now $605 in additional loan capital
- The interest has paid for $225 in training classes
- The family has $190 in savings
Iringa Hope SACCOS locations
