Questions to ask yourself just before you apply for a Sacco loan

What you need to know before you borrow.

We’ve all found ourselves between a rock and a hard place financially at one point, and the only way out for you is to borrow. There is a famous Kenyan quote that says “Hata Kenya ina loan” to loosely mean that you are in the right company even if you borrow. Borrowing and lending have been around us for a long time. Even the Bible has several instances. Money is a good thing, we all love it, and we all depend on it to steer our lives from one point to another. But Before you borrow money from the Sacco, you need to sit down and ask yourself a few questions.

1.Do I Qualify for A Loan

You can only borrow if you qualify. There are various criteria used to determine whether you are eligible for a loan:

Your deposits

Your Payslip

Your credit report

Your terms of employment

Your stay in the Sacco

Your frequency of contribution


Most Saccos, including SOS SACCO, give you a loan on a three multiplier basis; if your deposits are 100,000, you can access a maximum of 100,000 times three which is 300,000. Our minimum monthly deposit is 2,500 but you can contribute more to build your deposits faster and access a higher loan limit depending on your ability.

The difference between a person who qualifies for a higher limit and that of a lower limit is the patience in saving and the commitment to grow their deposits. With the convenience provided by M-Pesa, you can deposit as little as Ksh 100 daily. That will be Ksh 3,000 at the end of 30 days, added to your monthly 2,500, which is 5,500. In a year, you will have 66,000 making you eligible for a loan of Ksh 198,000.

To deposit to your Account, follow the steps below Use Mpesa Paybill 400222 and Account number 101730#YourLastName.

When you want a particular loan amount, but your deposits are not enough for you to qualify, you will have to boost your deposits by adding a certain sum of money. If you increase your deposits, it will take you 60 days to access the loan applied. Therefore the surest way to qualify for a higher amount is to maintain a regular contribution pattern.


Once in a while, you’ve been asked to provide your payslip to the Sacco office. Your payslip determines how much you can borrow by calculating your one-third. According to the Employment Act 2007(Section 19(3), An employer is permitted to make deductions from an employee’s salary provided the employee takes home not less than one-third of their salary.

Since your Sacco monthly contribution comes to the Sacco through the employer, the employer can not risk non-compliance penalties or imprisonment by allowing the Sacco to deduct more from your salary, leaving you with less than your one-third. To know your 1/3, get your payslip (the one without allowances/benefits), take your basic salary times 1/3. The amount you get is the amount the Sacco cannot touch. Remember, your deposits can allow you to qualify for a higher loan amount.

Still, suppose your payslip does not permit the amount needed to repay the loan to be deducted, you will have to consider other factors such as reducing the loan amount applied or increasing the repayment period. The key to ensuring your payslip is healthy is to avoid multiple lenders deducting from it. For example, if you have a KCB, STANBIC, or CBA Loan, you can request the Sacco to buy it off so that your payslip is free, giving you more borrowing power in the future.

Your credit report

As per the Credit reference Bureau Regulations 2013, commercial banks, microfinance institutions, and Saccos are mandated to share information on their entire loan books, meaning both up to date and late (overdue) repayment details of a borrower are shared. (Source:

This data is submitted electronically monthly to the CRBs.

After reviewing your Credit report, a Sacco will choose to give or deny you a loan. Having a positive report indicates to Sacco that you have Character, Capacity, and Capital to repay your loans. Suppose you are already listed by a Credit Reference Bureau(CRB) or constantly have a negative report(defaulting). The Sacco classifies you as a high-risk borrower. As a result, you can only qualify for small loans or not qualify at all.

Kenya has 3 licensed Credit Reference Bureaus

Metropol CRB

Transunion CRB

Creditinfo CRB

Below are 2 methods through which you can check your CRB status:

Method 1

You can access CRB services from Metropol services through Metropol website (, Metropol crystobol app, or dialling *433#. You will pay Kes 50 as registration fees through the PayBill number 220388. Enter your ID number as the account number. You’ll get an SMS with your unique PIN details, a Reference Number and a special link. After you register, you can now dial *433# and log in using the details provided.

Metropol CRB Charges

CRB credit report – pay Ksh 250 to get detailed information on institutions that have listed you. CRB Kenya clearance certificate: After making sure you have cleared all your loans, you can now be issued with a Clearance certificate at Ksh 2,200.

Method 2

Send your full names to 21272

Pay Ksh.50 to pay bill 212121, and your ID number is the account number

Send CS to 21272 to get your CRB status and a free credit report or

Download the TransUnion Nipashe App from the Google Play/ App Store

You are entitled to one free report every year (Source:

Your terms of employment

If you are employed, you are either permanently employed, on a contract or wages. If you are permanently employed, you have benefits such as the end of service dues and pension.

Employees on permanent terms enjoy a more extended repayment period of their loans. The amount the Sacco agrees to give you is also determined by whether you are permanent or temporary. If you are on a contract, the amount of loan you qualify for is determined by the last date of your agreement for example if your contract ends in December 2022, you must have fully repaid your loan by that time.

Retirement and resignation will also determine whether you qualify for a loan or not. If you are retiring soon or planning to resign, it is wise to inform the Sacco in good time.

Your stay in the sacco

You qualify for a loan after you have been a member for at least six months. This is important because you will have accumulated enough deposits to guarantee you a loan.

Your frequency of contribution

You need to contribute your deposits every month for at least three months for you to qualify for a loan.

In conclusion

A loan can make or break your life. Therefore it is crucial to take some time to review the above questions before applying for one.

If you have questions or comments Call/WhatsApp: 0731 005 723

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