Loans
SME Group Lending
Solidarity group lending is the process of advancing loans to micro and small business sector which its security is based on group guarantee with attachment of assets repayable on monthly basis and compulsory savings.
Solidarity Group Loans are for micro and small entrepreneurs whose income depends on their own businesses or economic activities, who may lack formal financial statements and other accounting and operational records, and who may lack physical securities.
FEATURES
Loan Amount | From: TZS 5,000,001/- TO TZS 10,000,000/ |
Member Fee | NIL |
Turn-around Time | Seven (7) Working Days |
Interest Rate | 28% Flat per year |
Repayment Model | Monthly |
Repayment Period | Up to 24 Months |
Life Insurance | 1.5% |
Rebate | NIL |
Commitment Fee | 3% |
Cash Cover | 30% |
Security | Member's Guarantees, Borrowers Weekly Savings, Movable household's properties, e.g. Radio, TV, Bed sheets, Sewing machine, Bicycle, or stocks of goods and Immovable properties or Sales agreements |
REQUIREMENTS/ELIGIBILITY
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SECURITY REQUIREMENTS
The security for the loan will take the form of:-
i) Borrowers monthly savings
ii) Members Guarantees
iii) Apart from the group guarantee the customer should submit Immovable property/landed property or chattels, Households and stock of goods to be pledged to strengthen security position
BENEFITS
The loan are to be used for productive purposes They may be applied for
The purchase of raw materials
The purchase of stock
The purchase of fixed assets for the business such as machinery or furniture etc.
The expansion of the business
