Merry-go-rounds and chamas have become a way of life for many and subscribing oneself to a Chama is more a rule than an exception.
Most of these Chamas are premised on noble objectives for their members and they range from saving portals where members pool resources and purchase assets, or for a specific purpose, to others whose objectives are defined on a need basis.
A typical Chama requires an equal monthly contribution from each member. In some groups, members don’t contribute the same amount and they have a clear way of determining each member’s shares.
This has led to the creation of thousands of investment groups that have greatly contributed to the progress of the Kenyan economy and provided more people with additional income.
These groups have become a force to reckon with, and most of them are constantly looking for ways to innovate, to better transparency, and conveniently make contributions without a hassle.
But before we introduce you to a tool that works great for the needs of a Chama, let us have a look into some of the advantages that people in Chamas enjoy and that may prompt one into joining one:
Flexible Loaning Policies
One main reason that pushes people into forming Chamas is the need to save and invest. In the process of investing, one may need financial support time and again and this is one thing that had made Chamas more popular.
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Unlike other financial institutions like banks, Chamas tend to have very flexible loaning policies which are disbursed with ease and with minimal interest rates.
Support System
Being in a Chama allows one to have access to both financial and emotional support. Aside from sharing savings, a Chama can be a networking opportunity to make new business acquaintances and make long-term friends.
Lower Investment Risk
When one invests in a Chama, they conduct investments as a group. Therefore, they do not have to take the risk of an investment on their own as they have multiple shoulders to help out in carrying the burden.
Learning experience
Chamas create the perfect learning environments because they bring together different people with a mutually beneficial goal.
One gets the opportunity to work and interact with people from different fields of expertise. This in turn enables one to learn from the best.
Financial Security
We have heard of instances where people have been duped of their money. When one is in a Chama, the fear of failing and fear of other risks which prevent them from venturing into investing turns into a thing of the past.
One is sure that their finances are in a secure place, and at the end of the day, they will come with more interest.
Creates a Source Wealth
Creation of enough capital for projects becomes much easier when it is done by a group, as compared to doing it as an individual
Once the investment projects are funded and start running, the profits earned creates long-term wealth for the Chama and its people.
Malipo App
If you are in a Chama and are looking to make the group more interesting, to make it work for you and negate any challenges that may arise, there is no better tool help than that from Malipo Circles.
Malipo Circles provides investment groups with a solid platform that is convenient for all the objectives set and ways of contributing or auditing funds. It provides you with Malipo App, a solution that also allows groups to come together and contribute towards a specific purpose. Some of the app’s functionalities are collections, disbursements, loans, record keeping, reports, marketplace, among others.
Malipo App is the right platform for Chamas as it negates distrust, ensures that members continue contributing even when they are absent, keeps track of all the transactions while ensuring utmost transparency.
Better yet, your Chama’s deposits/savings are held in a trust account that sits with a regulated bank. The money is only accessible by the Chama officials as set out in the app during the Chama setup.
All members have visibility of the money. Malipo App allows you to set up your bank account for real-time withdrawal to your Chama bank account.
Learn more about the Malipo App here and all the benefits your Chama stands to enjoy.