Chamas have become the go to for many people as they assist them in different financial and other constraints in their lives. The Chama type of distribution is popular as it has a hierarchy of order which ensures all the Chama members are able to grow in harmony. As a Chama member, you will be able to enjoy the following benefits;

• Accelerated Wealth Building

In a Chama, there is pooling of resources. This means that what would have taken you a long period to save up for as an individual will be achieved in a much shorter period. This accelerated access to capital allows the group to invest more and equally get higher returns much faster. Coming together allows the members to enjoy and grow much faster, as compared to ‘saving solo’.

•  Loan Facilities

Many Chamas offer loan facilities to their members. In these Chamas, they offer better favorable interest rates or terms compared to other lending institutions. As a member, when in financial need, the avenue provides a convenient and affordable source of credit. Chamas have friendly loaning policies, minimal interest rates and also are accommodative in their debt collection. Banks have been known to be very punitive when it comes to recovering money from defaulters.

•  Saving Culture

Being a Chama member, one is obligated to be financially disciplined as a saver. Every investment group prioritizes savings. Some Chamas are investing, others are Merry-Go-Round. In the case of the Merry-Go-Round groups, each member is required to contribute a specific amount at the agreed upon period, some do daily, others weekly, and others still monthly. At the end of the period, one member enjoys a lump sum to use as they please. For many people, it is difficult to save alone as needs always arise and crop up. However, in a group, it is easier to have all the member set aside the agreed upon amount. Some Chamas have gone a step further and incorporated banks and/or Saccos in their savings plans, these can offer the members the added advantage of added interest rates on their savings.

•  Increased Investment Knowledge

Being part of a group, one has access to several minds, ideas and experiences. These are great when one wishes ti invest. They are able to engage the group and make an informed decision and not lose their moneys. This avenue provides an excellent learning experience. Some Chamas also engage investment experts to speak to their members and this in turn improves their financial skills.

•  Social Support and Increased Network Pool:

Chamas provide a platform for individuals to connect, share experiences, and support each other in achieving their financial goals. This social aspect can enhance motivation, accountability, and a sense of belonging. Where members share finance-related networks, the networks serve to shorten learning curves, because as an individual you tap from the experience of other members and avoid known pitfalls later. The wider the diversity of the members an investment group is in terms of gender, age, professions, etc, the more its members stand to benefit from different views on top of broadening networks. Due to the amount of time spent together, many Chama members end up bonding beyond the initial coming together. They keep in touch on how each of them and their families are faring, they share ideas for overcoming struggles and also celebrate each other’s’ successes. During fundraisers, and while setting up contributions, members learn more about each other. This is an addition to the good rapport that exists between members.