RIDO Sacco currently has two major product Categories and these are savings and provision of credit to its members.

SAVINGS

RIDO Sacco by nature of its registration is mandated to mobilize savings from its members and below are major products we are currently providing to our members. These products include but not limited to;

  • Voluntary Savings
  • Compulsory Savings
  • Corporate Savings
  • Group Savings
  • School Fees Savings
  • Fixed deposit Savings
  • Special Group Savings
  • Minor Savings
  • Target Savings

For Individual savings, the minimum account balance is shs 10,000 and 30,000 for groups, institutions/corporate savings.

Minimum savings on fixed deposit is 300,000. Interest on fixed savings accounts ranges from 12%, to 18% per annum; members are encouraged to save whenever at any time not less than 5,000 per month. And 6% p.a is paid on minimum balance for other savings apart from compulsory savings which attract zero interest.

LOAN PRODUCTS

Provision of credit to our members is the main business of RIDO Co-operative Savings & Credit Society and it is what is demanded most by our members and the general community.

We are providing Twelve (12) loan products  to our members despite increased demand for other loan products to be considered as soon as we increase our fund base.

Below is a description of our loan products that we provide to our Clients/Members;

Agriculture Loan

We have agriculture loans for our farmers and give them time to harvest and pay after harvesting and selling of out puts. This loan product caters for both farmers and those dealing in agri- business activities such and value addition, agro inputs etc.  borrowers are given a grace period of 3months and the interest rate is at 3% Reducing balance basis and the maximum loan period is exceed 12 months. The maximum loan amount under this category is  Ushs 5,000,000 for individuals and Ushs 15,000,000 for groups.

Agri-business Loans

This product is meant to cater for those dealing in agri-business. This product will not have any grace period and the interest rate is at 3% on reducing balance as it will be determined by BOD and  the loan the period does not exceed 24 months and the maximum loan amount is 30,000,000 for groups and 20,000,000 for individuals.

Agro Processing/Value Addition Loan

This product includes irrigation equipment, tractors, blenders and others and other agriculture in puts. The interest rates, loan repayment period and the maximum loan amounts shall be  determined by the board of directors.

Commercial loans /Business Loans

The product was introduced to support business entrepreneurs within area operations who have income generating activities. However, many of our members in this product include those who take loans for buying fixed assets, carpentry, and wholesale and retail shops. The loans attract a monthly interest rate of 3%  Reducing balance . The minimum loan amount under this is 200,000 Uganda shillings and the maximum is 20,000,000 Uganda shillings for individuals and a maximum of 30,000,000 Uganda shillings for groups and institutions.

Salary Loans

This product is designed for members in the employment category  and they live within our  community of operation. A member has to present an appointment letter within a valid identity card and a recommendation from the employer. The amount is determined by net salary but not exceeding 5,000,000 Uganda shillings.

Quick Loans

This product targets mainly borrowers who have demonstrated good repayment history within the community and the SACCO. They should be having an urgency needs which requires quick attention within one or two days. The loan amount ranges between Ushs 100,000 and 5,000,000 with a maximum loan period of Five months. It attracts an interest rate of 5% per month on reducing balance with processing charges of 8%.

Emergency Loans

This product targets mainly borrowers who have demonstrated good repayment history within the community and the SACCO. They should be having an urgency needs quick attention within one or two days. The loan amount ranges between Ushs 100,000 and 2,000,000 with a maximum loan period of three months. It attracts an interest rate of 3% per month on reducing balance with the loan processing of 5% this loan is intended to rescue members who are faced with severe sicknes,death or accident of close relative.

Motorcycle/Vehicle  Loans

This product is meant to create jobs for young generation by providing motorcycles for Boda Boda. Under this product the SACCO will provide Motorcycles, not cash and it will attract an interest rate of 3% per month and the loan period will not exceed 24 Months. The applicant is required to make savings of at least 30% of the value of the motorcycle/Motor vehicle.

Asset Acquistion Loan

This product aims at empowering members to acquire assets for either their businesses or households. The applicant is required to make savings of at least 40% of the asset being request for. Among these assets may include eg sowing machines, computers, wheel balls, motor cycles, land among others.

School Fees Loans

This product is intended to help members (or their children) of the SACCO to acquire better education. Beneficiaries should provide proof of admission or receipts of payment or performance documents.

Home Improvement Loan

This product will help members to improve their homes. This may include; buying furniture, renovation, installation of electricity, plumbing, etc.The interest rate shall be 3% per month on reducing balance and the maximum  loan amont shall be  5,000,000 within the period of 12 mounths.

Solar Loans

This product aims at enabling members to acquire solar systens for clean energy including solar water heating, charging appliances, salon,irrigation systems etc. The maximum loan amounts is Ugx 4,500,000 . The applicant is required to make savings of at least 30%.The interst rate shall be 3% per month on reducing balance and maximum loan period shall be 24 Months.

The terms indicated above for the respective loan types are subject to changes and may be changed at any time without making consultations with clients and this may be communicated after wards. Additionally, although the client fulfills all the set condictions, the Loans Committee and/or board of directors may decide to decline the application due to other reasons that may or may not be communicated to the respective client.

All loan products above are guaranteed by 2 guarantors who must be  members of RIDO SACCO and on top of the guarantors, in case of an individual loans, the member has to present a tangible collateral like motor vehicle logbook, land titles, kibanja agreements e.t.c to a tune of 2x the value of the loan amount approved. However, this does not apply to group loans as other members and their savings serve as purpose. This is well illustrated in the table below.