What is a SACCO?

Saving and Credit Cooperative Society is a group of people who have common bond, live in the same community or society save money together and lend it to one another at agreed interest rate, time and conditions. It is a democratic, unique member driven and self-help union (Marcus, Beth & Caroline, 1999).SACCOS also defined as a legal entity established by the voluntary membership of private or public for the purpose of depositing their savings and providing credits to its members (URT, 2004)
Savings and Credit Cooperatives Societies (SACCOs) have been established to serve people who were lagging behind by classical financial system to meet their basic human needs.

What is Umurenge SACCOs?

Umurenge SACCOs was established in 2008 with the aim to boost up rural savings and provide Rwandans with loans to improve their earnings and enhance their livelihoods.
The Fin Scope 2008 and 2012 surveys have revealed that in 2008 21% of Rwandans, 18 years or older, were using formal financial institutions.

What is the difference between Shares, Deposits and Saving?


  • The amount representing a member’s portion in the equity of the society as a co-owner.
  • No member other than a Cooperative Society shall hold more than one-fifth (1/5) of the total shares
  • Shares are not used to determine the eligibility of a borrower or a guarantor.
  • Shares are not withdraw able but are transferable.


  • every member must make regular deposits towards alpha deposits in accordance with Savings and loans policies.
  • They are not withdrawn in part or in full as long as a person is a member of the Sacco.
  • These deposits may be used to determine the eligibility of a borrower or a guarantor.


Saving is income not spent, or deferred consumption. Methods of saving include putting money aside in, for example, a deposit account, a pension account, an investment fund, or as cash.[1] Saving also involves reducing expenditures, such as recurring costs. In terms of personal finance, saving generally specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is a lot higher; in economics more broadly, it refers to any income not used for immediate consumption.

What are the acceptable Securities for a loan?

  1. Guarantors
  2. Deposits in the SACCO
  3. Land


  1. Deposits in the SACCO
  2. Land
  3. Buildings
  4. Bank guarantees
  5. Corporate guarantee
  6. Share certificates
  7. Vehicles
  8. Endowment Insurance policies  

Who is eligible to be a guarantor?

Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed. A guarantor must be willing and able to repay the loan guaranteed if the loaners fail to pay

What is the role of a guarantor?

Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.

What are the rights of a guarantor?

  1. The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction
  2. The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent.
  3. The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at any time and even before the Society has called upon the borrower to pay the debt.
  4. The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco.

What does a borrower need to know about a the loan the he is guaranteeing

  1. Loan amount
  2. Repayment period
  3. Applicant source of income
  4. Applicants term of employment
  5. Applicants retirement date
  6. Applicants contact details
  7. Any other details relating to the applicants character