How it works

Each member engages in what they are best at without imposition.

Our loan officer handles all aspects of making and collecting the micro-loans, training members, and monitoring the status of the members’ individual businesses that are receiving the loans.

Once the internal revolving loan fund is fully funded, the group hopes to add a supplemental fund to provide medium term home-related loans for members to purchase land on which they can build homes.

• Loans are received after an oral test to assess the client eligibility and group cohesion.
• Collateral free loans use group guarantee mechanisms and peer pressure to minimise risks.
• Loan cycle for a period of 6 months with weekly/monthly group meetings facilitated by the group leadership and the monitoring of the Loans Officer.
• Stepped up loan amounts are based on repayment history
• We support people even if they do not have a collateral (such as a land or a car).
• In this respect interested people are requested to constitute themselves into a CBO (community-based organization) group. This allows the group to develop its leadership and to become responsible for the group’s activities and development.
• Interest rate charged is flat rate 2.5% per month.
• Rate loan and timing varies according to personal conditions.
• Village Banks Loans are developed under dedicated CBO with independent Bank accounts and requires attending a 7 days minimum training to selected members and community mobilization meetings on regular basis.
• A management information systems from Village Bank level to loan officers track every saving