1. Co-operative Background

Masihlume Saving and Credit Co-operative was found in February 2004 in Grahamstown. This was a result of meetings between Rhodes University workers and SACCOL, where they decided to form a co-operative to improve the socio-economics of the workers and Grahamstown community in general. At the end of those meetings, a need was identified that is to set up a SACCO/ CFI where people will be encouraged to save together in order to build their own capital base that can be utilized to develop the aspirations of the Grahamstown community.

Masihlume SACCO is a financial co-operative of people who save together and lend money to each other at reasonable interest rates. It offers members a chance to have control over their finances by investing and calculating their savings among themselves to further their needs.

It is a democratic organisations, owned and controlled by its members. Each member has an equal say in the running and operation of SACCO/ CFI. SACCO/ CFI is formed by groups who share a common bond. All SACCO members are required by the act to be members or affiliated to Co-operative Bank of South Africa (CBDA/SARB).


2. Co-operative Mission

Masihlume SACCO/ CFI is a dynamic, self-sustaining member owned financial co-operative operated on safe, sound co-operative and business principles, so as to help to eradicate poverty against the previously disadvantaged people.


3. Co-operative Objectives

  • To promote the economic welfare of community members around Makana Municipality.
  • To encourage savings by providing a means whereby such savings and shares may receive a reasonable rate of interest or dividend and in the process helping members to be financial independent.
  • To educate members in money management and control and also promote understanding of the economic framework within which co-operatives operates.
  • To promote interest in the community development and develop a sense of honesty and responsibility within its members.

4. Co-operative Products and Services

a. Shares Account

Every member and potential member of the SACCO must hold a minimum of  R 500 shares at a nominal value of R 1 each.

b. Savings

All Members and potential members should contribute/Save a minimum of R 100 towards this account on a monthly basis. The savings can be withdrawn on request by members.

AS PER THE SAVINGS POLICY OF MASIHLUME SACCO

All Members  and potential members of the SACCO should and must adhere to the below mentioned Terms and conditions which apply to all Regular savings deposit accounts.

  • No opening and monthly fee charged on this account.
  • Interest rate is XXX % and will be paid Monthly into members account.
  • A loan must be less than savings before qualifying for regular savings withdrawals and will only get a difference.
  • Members’ Regular savings are used as collateral for loan and will only be withdrawn once the outstanding loan is less.
  • A minimum deposit fee of R xx.xx monthly will be charged for every deposit made.
  • Monthly withdrawal fees are R xx.xx for cash up to R xx.xx and thereafter R xx.xx

                                      Members are encouraged to save regularly.

c. Christmas Savings

AS PER THE SAVINGS POLICY OF MASIHLUME SACCO

All Members and potential members of the SACCO should and must adhere to the below mentioned Terms and conditions which apply to all Xmas savings deposit accounts.

  • Members are encouraged to join the Christmas, Weddings and Traditional ceremonies savings clubs.
  • These funds are put aside and will be paid out to members in the beginning of December of each year.
  • These funds are non withdraw-able during the year and cannot be transferred to other accounts.
  • This account cannot be used as collateral for loans as it is payable only at the end of the year.
  • Interest rate is xx % and will be paid annually into members account.
  • Withdrawals before maturity date can only be approve by the credit committee and withdrawal fees are R xx.xx for cash up to R xxx.xx and thereafter R xx.xx

                                        MEMBERS ARE ENCOURAGED TO SAVE REGULARLY

d. Loans

Members are encouraged to save towards loans.

Loans issued are based on the members’ savings to loan ratio as per Masihlume Loan Policy.

Types of Loans are: 

  1. Long-term loan

LONG TERM LOAN 
 
This loan Product by definition and as per the Loan policyshould and shall be of a maximum of xx months to pay and with a maximum of R xxxx.xx loan amount.
xx% interest p.a is charged to the account and a declining balance method is used to Calculate Interest rate.
Monthly admin Fee of R xx is charged to the account and once off initiation fee of R xx.
Late Repayment fee is also charged to the account at a value of R xx and penalty fee will also be charge at a rate of……..after 10 days 


note:a member is expected to pay an existing Long Term Loan  account before he/she can qualify for another Long Term Loan Account.


This loan product is designed and enabled to be settled/paid using only Regular Savings Account.


  1. Emergency Loans

EMERGENCY LOAN 

This loan Product by definition as per Loan policy,should and shall be of a maximum of xx months and with R xxx.xx maximum loan amount.

xx% interest p.a is charged to the account and a declining balance method is used to Calculate Interest rate.


note:a member is expected to pay an existing emergency loan account before he/she can qualify for another emergency loan.


This loan product is designed and enabled to be settled/paid using only Regular Savings Account. Members are not allowed to settle this loan account with a Xmas Saving deposit account.


  1. Quick loan

QUICK LOAN ACCOUNT

This loan Product by definition as per Loan policy,should and shall be of a maximum of 1 months and with R 1 000 maximum loan amount.

12% interest p.m is charged to the account and a declining balance method is used to Calculate Interest rate.
Monthly admin fee of R xx is charged to the account and once off initiation of R xx is also charge.
Late repayment fee of R xx is also charged and penalties are also charged at at rate of…… after 10 days. 


note:a member is expected to pay an existing Quick loan account before he/she can qualify for another Quick loan account.


This loan product is designed and enabled to be settled/paid using only Regular Savings Account.


e. Funeral Insurance

Masihlume SACCO/ CFI offers a competitive funeral insurance, covering the members. The cost is only R xx.xx per member for a   R xx.xx benefit.


5. Organisational Structure

Organisational structure


6. Conclusion

Masihlume SACCO/ CFI is open to any person who reside in the Makana Municipality area and neighbouring rural areas who wants to become a member.

CONTACT DETAILS

Masihlume Savings and Credit Co-operative     |     Reg. 2004/000084/24  |    Tel: 046 622 7053   |   Fax: 046 622 8059   |            Email: masihlume@albanynet.co.za    |   

 8 Bathurst Street, Grahamstown, 6139|