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Purpose
Work out the project cost, your own contribution and the amount you want to borrow.
AKAGERA SACCO KAYONZA
Start borrowing
with understanding.
Understand purpose, cost and obligations before you apply.
AKAGERA SACCO KAYONZA
Capacity
Record income, essential household costs and other debts. Consider periods when income arrives late.
The terms
Ask for written explanations of interest, all charges, security and the repayment schedule.
Follow through
Keep payment evidence. If repayment may become difficult, contact the SACCO early.
The same quoted rate can mean different things.
Ask whether interest is calculated on the original amount or the outstanding balance, and whether the quoted rate is monthly or annual. Rates calculated differently are not directly comparable.
Original amount
With a flat-rate method, interest is based on the original principal for the agreed period.
Outstanding balance
With a reducing-balance method, interest is based on the balance outstanding under the contract.
The approved amount may differ from the money received.
Ask whether any charges are deducted before disbursement. Request the amount you will receive, the repayments and any separately paid costs.
Collateral and guarantors: understand the commitment.
Collateral can put an asset at risk if obligations are not met. A guarantor may be required to pay under the guarantee they sign. Read all documents and ask for an explanation of the commitment.
This is a preparation guide. Your account requirements, charges and contract terms are set by the SACCO. Confirm them before making a decision.