Solidarity Group Lending
SOLIDARITY GROUP LENDING
Solidarity Group Loans is the process of advancing loans of small amounts with its security is based on group guarantee of five people with weekly regular repayments and deposits. The purpose of the loan is to provide finance for supporting economic activities of households and youth in the informal sector, small and medium enterprises with potential for creation of employment.
|Loan Amount ||From TZS 200,000/- To TZS 5,000,000/-|
|Membership Fee||TZS 6,000/-|
|Turnaround Time ||Three (3) Workings Days|
|Interest Rate||2.5% flat per Week|
|Repayment Period||Three (3), Six (6), Nine (9) and Twelve (12) MONTHS|
5 persons who enjoy mutual trust will form a group.
Should be the residents of the area of operations or nearby communities.
Group members should not belong to the same family
To attend four days pre loan training (once a week for four weeks)
To have loan approval from members of the group
To contribute emergency fund TZS. 200 per week
To save TZS. 5,000 minimum per week.
The business to be financed must have a regular cash flow
Maximum age limit for SGL borrower’s (Customers) shall be 65 years
NIDA ID or Introduction letter from local leader.
ID/ Passport- Originals to be viewed and copies attached.
Two passport size-photograph.
Security will be Borrowers weekly savings,Movable households’ properties e.g. Radio, TV, Bed Sheets, Sewing machine, Bicycle or stocks of goods, Members Guarantee and Immovable properties.
Commitment fee 3% will apply from second loan on-wards