Chitukuko Sacco Malawi

Frequently Asked questions (FAQs)

1. Q. Who can join Chitukuko Sacco?
A. Anyone who is employed can join Chitukuko Sacco.

2. Q. Upon joining what will you be required to contribute?
A. Every member contributes a minimum of MK5,000.00 as shares. These are mandatory. Every month a member will send these contributions which are called shares. 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 at when required.

3. Q. How does a person pay these shares every month?
A. Deductions for shares come directly from the payroll or from the bank via online deductions. One will need a go ahead from their office that deductions will be conducted from their salary.

4. Q. But how does a company get to deduct Sacco shares from a person's salary?
A. Sacco officers will discuss with the company in question and we sign an agreement with them in which they only agree that they will deduct those who willingly decide to join the Sacco and send the deductions to Chitukuko Sacco. If the company states it can not deduct directly from the payroll, then we direct the prospective members to our partner banks. For deductions conducted with our partner banks, the associated cost is for Chitukuko Sacco.

5. Q. Why do you have to contribute shares every month?
A. 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 over burden a person. So in order to keep members active monthly whilst growing their share base steadily, contributions are done monthly.

6. What are the benefits of the Shares?
A. Firstly shares are what makes 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.

7. Q. What happens when a members wants to withdraw?
A. A member writes a letter to the Sacco and is given  90 days waiting period where all the shares are given to the member minus non-redeemable shares of MK6,500. There is a withdrawal administration fee of MK5,000.

8. Q. What happens when a member dies?
A. 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.

To download a membership form click here

DEPOSITS/ SAVINGS
1. Q. What are deposits or savings?
A. 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.
 
2. Q. How are shares different from deposits?
A. 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 can not 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.
 
3. Q. Why are deposits important in the sacco?
A. 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.
 
4. Q. Can deposits guarantee a loan?
A. Yes. But when the deposits guarantee a loan they act as shares so they can not be withdrawn unless that loan is completed.
To know more about out deposit products and rates click here
 

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