In simple terms, self-guaranteeing means using your own savings or deposits as security for a loan instead of relying entirely on other members to guarantee you.
For example, if you have KSh 100,000 in eligible deposits and want to borrow KSh 50,000, Soma SACCO may allow you to use your deposits to secure the loan, subject to its lending rules.
However, share capital and deposits are different. Share capital does not automatically qualify as withdrawable security, and the SACCO must determine which funds are eligible for loan security.
One important legal point: Kenya’s regulations prohibit non-deposit-taking SACCOs from accepting a member’s shares as loan security, while requiring loans to be adequately secured.
For Soma SACCO, confirm with the credit department whether members can borrow against their own deposits without additional guarantors. The exact arrangement depends on Soma’s SACCO category and approved lending policy.