Microfinance group based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral. These loans are usually small in size and have a short tenor. To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these type of loans one has be a member of the following groups.
1. Chama Biashara- For all registered and unregistered groups of 5-10 members
2. Ungana - Registered and unregistered investment clubs who come together with the sole purpose of borrowing to invest
3. Individual Microfinance (IMF) - For individuals engaged in business and are not willing to join the group system (Secured Individual Borrowing)
Group lending is where individuals borrow in the group by use of co-guarantee mechanism and any other appropriate securities accepted by the bank.
Apart from group loans, customers are able to access individual loans. This is an excellent facility for those clients who have outgrown group loans.
- Business Entrepreneurs
- Those willing to join the above groups
- No conventional security is required
- Can be in any business
- Easy repayment period
- Quick access to loans