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What is Arts SACCO Objectives?
To promote culture of savings, improve access to finance, improve welfare of artists, establishing business models in different artist disciplines, collectively generate income for the sustaining arts industry, financial prudence, to encourage solidarity, to build platform for securing financial services.
Who can join Arts Sacco?
- Members of rights holder associations and their spouses
- Registered members of COSOMA and their spouses
- COSOMA employees and their spouses
- Rights holder associations' employees and their spouses.
Why Choose Arts SACCO?
- Members are able to save and withdraw money without any charge
- Members are able to access loans both short term and long term.
- Members are able to determine the flexible and ideal period of repaying the loans
- Loans offered are on reducing balance method and at lower rates
- Quick loan processing period within four working days and 24 hours for emergency loans
- Members are able to express their concerns during annual general meetings.
- Insured loans and shares
- Automated service delivery system
- Mobile banking services
Upon joining what will you be required to contribute?
Every member contributes a minimum of MK5,000.00 as shares and MK2,000 as deposits. These are mandatory. Every month a member will send these contributions which are called Redeemable shares and demand savings. These shares are what make a person to be known as a member of the SACCO. These contributions are what determine how much a member should get as a loan, as when required.
How does a person pay these shares and deposits every month?
Can be paid in cash at the SACCO office, can send on Airtel Money or Mpamba, make direct deposits to Banks, make online transfers through M0626 or *247# or Issue a cheque.
Why do you have to contribute shares and deposits every month?
The minimum share amount is MK5,000 but there is no maximum. We believe that savings are a continuous process and are not supposed to overburden a person. So in order to keep members active monthly whilst growing their share base steadily, contributions are done monthly.
What are the benefits of the Shares?
Firstly, shares are what make a person a member. They make that person part owner of the SACCO thereby standing a chance to influence changes should need arise. Secondly shares act as surety over loan, which means that members are the only ones who enjoy SACCO loans. Thirdly, shares earn dividend every year depending on how much the SACCO has made that financial year.
What happens when a member wants to withdraw?
A member writes a letter to the SACCO and is given a one month wait period where all the shares are given to the member minus non-redeemable shares of MK10,000. There is a withdrawal administration fee of MK2000.
What happens when a member dies?
All shares are insured against death. When a member dies, total shares outstanding are doubled and are paid to the beneficiaries the member had specified when joining the SACCO. All loans are also insured against death, so when a member dies the loans are paid off by the insurer.
Deposits / Savings
What are deposits or savings?
A deposit or saving is the money that you keep or save with the SACCO for future use. This money can be saved on short term basis or long term. This depends on the preference of a member.
How are shares different from deposits?
Firstly shares are mandatory and are what makes a person to be a member and have to be contributed monthly whilst deposits are optional, a member can opt out. Secondly shares cannot be partly withdrawn except when member decides to close their account but deposits can be withdrawn anytime within the course of the membership. Thirdly deposits earn interest which is fixed depending on the product taken whilst shares only earn dividends at the end of the year depending on what the SACCO has declared as surplus.
Why are deposits important in the Sacco?
With deposits you are assured of a certain interest on the amount that you are saving. Deposits are accessible at any time and reduce your financial stress. Deposits can make you avoid debts and ensure you grow your money. Furthermore, our interest rates are extremely competitive on the market.
Can deposits guarantee a loan?
Yes. But when the deposits guarantee a loan they act as shares so they cannot be withdrawn unless that loan is completed.
Cooperative Society
What is a Cooperative Society?
A cooperative is an autonomous association of persons united voluntarily to meet their common economic and social needs through a jointly-owned and democratically-controlled enterprise/business.
What is a SACCO?
It means Savings and Credit Cooperative (SACCO) which is a member-owned financial cooperative whose primary objective is to mobilize savings and afford members access to loans (productive and provident) on competitive terms as a way of enhancing their socio-economic wellbeing. It is formed by people having a common bond.
How Different Is A Sacco From Other Banks Or Micro-Finance Institutions?
SACCOs are member-owned and not profit-oriented. Their philosophy is “people helping people to help themselves”
What Are The Benefits Of Keeping Money In A Sacco Compared To Other Banks?
- Members have a voice in the running of the SACCO since they own the institution
- Depending on profitability, members may receive dividends at the end of the financial year
- Access to financial services is non-discriminatory and affordable
How Safe Is One's Money In A Sacco?
The SACCO mechanism provides for the safety of members’ money i.e. controls and procedures, committees and reporting structures all provide for the safety of the members’ money.
The SACCO is a regulated institution with several stakeholders that have nothing but an interest to ensure that systems are in place to safeguard members’ investments.
Elections Of Office Bearers
When does the SACCO hold its Annual General Meeting?
The Annual General Meeting (AGM) is held annually after the financial year ends.
What are the qualifications and qualities for one to be a Board of Director?
- Must be a SACCO member and a strong believer in saving regularly and the importance of repaying loans promptly.
- Must be a SACCO member for at least a minimum of one year and saved more than average shares.
- Must be able to read and write, preferably be able to understand and speak English.
- Wherever possible directors should have a minimum of a Malawi School Certificate of Education. Those with Accounting and Administration professional qualifications and above are preferred. However, wherever this is not possible, the other qualifications can suffice.
- Must not have been convicted of any criminal offence in a court of law.
- Must have a good credit history
What is the size and composition of the Board?
The Board of Directors must be 5, 7, 9, 11, based on the type and size of the SACCO. All directors shall be members of the SACCO and will choose amongst themselves the other committees of Credit and Education. The Executive Committee will comprise: Chairman (president), Treasurer, Secretary and SACCO Manager (as an ex officio)