The loan facility targets non-salaried individuals but with a defined source of income and operating in groups. The groups can be in form of Cooperatives, Associations, Village Savings & Loans groups, or Clubs. The group acts as social collateral and guarantees the loan for its member (s) through deposit of collateral savings with Community Finance Ltd.
Requirements
- Evidence of Membership or Group Guarantee Letter
- Share certificates in case of cooperatives.
Terms
- Maximum Loan Term – 6 Months
- Maximum Loan Value – According to the Applicant’s capacity to repay from defined income source.
- Loan is deducted from source of income by the Association and remitted on behalf of members to COFI.
- Effective interest rate on reducing balance.
