Overview

A chama or sacco loan from a micro-finance institution is a form of financial assistance provided to members of a savings group or cooperative in Kenya.

These loans are typically designed to promote financial inclusion and empower small-scale entrepreneurs and low-income individuals. Chamas and saccos are community-based organizations that pool members' savings and provide credit and other financial services. The loans can be used for business ventures, education, healthcare, or personal needs.

They often offer more favorable terms and lower interest rates compared to traditional lenders, making them a popular choice for those who may have limited access to formal banking services.

These loans are typically offered at competitive interest rates and with flexible repayment terms. Members of the chama or sacco can pool their savings and apply for a loan collectively, which often allows for larger loan amounts than an individual member could secure on their own.