Is a Sacco better than a bank for a small business loan?

Compare the two offers on two numbers rather than on the rate: the total amount repayable over the full term including every fee and compulsory add-on, and what actually reaches you on day one after any deduction at source. A Sacco quoting interest on the original amount can cost more than a bank quoting a higher rate on a reducing balance, and nothing in the advertised percentages reveals that.

Count the non-money costs too. A bank may want collateral; a Sacco will likely want fellow members to commit their deposits as guarantors, which has a social cost and reduces their own borrowing capacity. For most business owners the answer is not one or the other but building Sacco deposits before the need arises, so that option exists when it matters.