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Taking a Glance at URA SACCO that has hit a record UGX 2.05B in Loan disbursements

Kampala, Uganda: They strive to be a model Savings and Credit Investment and Financial Literacy service provider in Africa, indeed basing on their latest book of accounts, Uganda Revenue SACCO is destined there, as theCooperatorNews unveils.

With 3125 registered members as of today, URA SACCO in 2018 disbursed a total of 2, 050,009, 000 (shs Two Billion and fifty Million Shillings) as loans to its members.

The member savings amounted to shs1, 900, 000, 000 (One Billion, Nine Hundred Million shillings), while the share capital stood at shs1, 250, 000, 000 (One Billion Two Hundred and Fifty Million shillings)

Mr. Julius Nkwasire Mponooka, the URA SACCO Chairman appreciated the boards move for always being handy when issues arise that needs management approvals.

According to Nkwasire, all loans area disbursed any time in the month, apart from the interest which is paid monthly. The loans at URA SACCO attract a 1% insurance surcharge as well as shs20,000 a flat processing fee incurred by all members. The types of loans include:

Development Loans

The loan is given on the basis of members’ savings and shares capital times three in line with the approved limits for different ranks. The maximum repayment period 60 months with an interest rate of 14 percent per annum on a declining balance. The aim of this loan is mainly to assist members in their business development projects.

Quick Loans

The amount granted under this product does not exceed 2,000,000 shillings the interest chargeable is a flat rate of 3% per month with a maximum repayment period of 4 months The aim of the loan is to assist members facing an unexpected personal problem.

Emergency Loans

The loan is given on the basis of members’ savings and share capital times. The maximum repayment period 12 months with an interest rate of 14 percent per annum on a declining balance. The amount applicable in this case is determined by the member contribution and the loan repayment which should not exceed 50% of client net salary. The loan is essentially intended to address client short term financial needs

Land Loans

This is a loan advanced to members to own land from SACCO at a low-interest rate of 14% per annum for a maximum period of 36 months. In as much as a member may use the land right after loan approval, legal rights to ownership are transferred upon completion of the loan

Share Loans

The loan is based on shares times four; terms and conditions relating to recovery amounts and loan limits apply. Current repayment period is 60 months with an interest rate of 14 percent per annum on a declining balance. The aim of this product is mainly to encourage members to increase on their capital base in SACCO and to as well assist members in their business projects.

Loan buy out

The SACCO undertakes to buy out client loans in commercial banks through the buyout loan product. Clients benefit when their loans are transferred to SACCO at lower rates compared to high commercial lending rates. Loans are approved at an interest rate of per annum on reducing balance within the approved lending limits. Loan repayments go up to a maximum of 60 months

Open Finance Loan

The product was introduced to serve those clients who have not been able to raise the required contribution in terms of savings and shares in order to qualify for loans under other products. With minimum contributions (3,000,000 in share capital and at least 50,000 monthly deposits) a member can access for a loan not exceeding the approved limit at 17% per annum and pay within a maximum period of up to 60 months. However, for better risk management, client accumulated long service award and collateral security in the form of land titles come into play before loan approval.

Regular savings

This product is compulsory for all SACCO members with compulsory minimum deposits at 50,000 shillings per month primarily deducted from the salary but other deposits from other sources are also highly encouraged. The product earns 10% interest per annum compounded and posted on a monthly basis. There no limitations for withdraw of amounts saved on this product except in cases where such savings are held as security for running loans. The SACCO does not charge monthly account maintenance fees but a withdrawn charge of 20,000 shillings is paid by the member on each transaction. 

Toto account

It’s a voluntary savings product. Members can save from their salaries and other income sources by depositing the funds to the known SACCO bank accounts. The product earns 13% interest per annum compounded and posted on a monthly basis. Access to the amount saved is limited to once every after three months. The SACCO does not charge monthly account maintenance fees but a withdrawn charge of 20,000 shillings is paid by the member on each transaction.

Group savings

A group is any two are more people. Members of URA staff may save with the SACCO as a group. The same benefits received by individual savers are enjoyed by the group. Group accounts are however opened with an initial deposit of 500,000 shillings and going forward not less than 100,000 shillings is required every month. Groups are allowed to buy shares just as individual members and qualify for dividends annually.

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