See your real SACCO loan cost — eligibility, instalment, full schedule.
SACCOs price loans on a reducing balance. The headline rate looks gentle until you total the interest across a 4-year tenure. Plug your deposits, multiple, and rate to see the actual cheque schedule.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Eligibility
Deposits & multiple
Maximum eligible: KSh 450,000
Loan
What you'd like to borrow
Schedule
Amortisation
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | KSh 13,478 | KSh 4,333 | KSh 9,144 | KSh 390,856 |
| 2 | KSh 13,478 | KSh 4,234 | KSh 9,243 | KSh 381,612 |
| 3 | KSh 13,478 | KSh 4,134 | KSh 9,343 | KSh 372,269 |
| 4 | KSh 13,478 | KSh 4,033 | KSh 9,445 | KSh 362,824 |
| 5 | KSh 13,478 | KSh 3,931 | KSh 9,547 | KSh 353,277 |
| 6 | KSh 13,478 | KSh 3,827 | KSh 9,650 | KSh 343,627 |
Verdict
Monthly: KSh 13,478
Total interest over 36 months: KSh 85.2K.
Interest is on the reducing balance, so the first months are interest-heavy and the last months are principal-heavy. Prepaying any time before the halfway mark saves you outsized interest.
Result
Loan summary
Loan disbursed
KSh 400.0K
Monthly payment
KSh 13,478
Total repaid
KSh 485.2K
Effective cost
21.3%
Total interest as % of disbursed
Common questions
How does deposit-multiple eligibility work in SACCOs?
Most Kenyan SACCOs lend up to 3x — sometimes 4x — your accumulated share deposits. KES 100,000 in deposits typically unlocks a maximum loan of KES 300,000. The multiple and rate vary by SACCO; check your specific by-laws.
What is reducing-balance interest, and how does it differ from flat-rate?
Reducing-balance charges interest only on the outstanding principal. As you pay down the loan, the interest portion shrinks each month. A 13% reducing-balance loan is materially cheaper than a 13% flat-rate loan, which charges 13% on the original amount for the whole tenure.
Why do SACCO loans need guarantors?
SACCO loans are secured by guarantors' deposits. If you default, the SACCO recovers from guarantors' shares — which is why most SACCOs require 2–4 guarantors with enough collective deposits to cover the loan.
Is the rate I'm quoted by my SACCO the same as a bank's APR?
Not necessarily. SACCOs quote reducing-balance monthly rates that look identical to a bank APR but exclude membership fees, insurance, and processing charges. Always compute the all-in cost using your full repayment schedule, not the headline rate.
Can I prepay a SACCO loan?
Yes, almost all SACCOs allow prepayment without penalty. Because interest is on reducing balance, every extra shilling you pay today saves all the interest that would have accrued on it for the rest of the tenure.