Difference between main savings scheme and share capital for SACCOs

Difference between main savings scheme and share capital for SACCOs

Main savings scheme is a member's deposit account where they make monthly contributions with The Sacco. Savings contributions can be used as either security to member's loans or guarantee to other members. Interest rebate is earned on the main scheme deposit annually and is calculated on pro rata basis. Upon exit from the Sacco the member can access refund of the savings deposit as long as there is no outstanding or guaranteed loan.
On the other hand, share capital is the minimum shareholding that every member must hold with the Sacco. Share capital is non- refundable and not withdraw able even upon exit from the Sacco but is transferable to another member of the Sacco.
Share capital can not be used as security on loans either.
Each member is expected to meet the minimum share capital requirement . Dividend is earned on Share capital annually and is calculated on pro rata basis.

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