Group Loan
The purpose of this product is to help small-time traders who need money to expand their businesses but are unable to meet the strict requirements of commercial banks or who lack the requisite collateral. The self-guaranteed framework of the group concept enables these small-time traders to acquire borrowing facilities. Each group is limited to a minimum of five and a maximum of ten individuals. This product is largely targeted towards women, yet males are not excluded because Fortune Capital Savings and Loan Ltd is particularly interested in empowering women. It also targets individuals who work in teams, like the par boilers and market weavers in Kumasi.
Features
⦿ A group must have a minimum of five (5) and a maximum of ten (10) members (10).
⦿ Before money is disbursed, the group members must have a formal meeting location and meet with the relationship officer a minimum of three times.
⦿ The must-have executives [Chairperson, Secretary, and Treasurer], whose homes, places of business, and guarantors the credit officer and members of his or her team must visit
⦿ The credit officer and his team members must be aware of each member’s place of residence or place of employment.
⦿ Group guarantees the loan.
⦿ Loan term: three to four months
⦿ Weekly Loan Repayment Grace Period Time: two weeks following payment
⦿ Loan amounts range from 500 to 5,000 Ghana cedis.
⦿Individuals within a group are required to provide a group assurance.
⦿ Individual members of a group must provide a collective guarantee.
⦿ Loans that are paid off early accrue one month’s worth of additional interest on top of the outstanding principle.
⦿ Interest rates: NORTH 4.5 percent, SOUTH 5% (monthly)
⦿ 25% in the North, 25% in the South
⦿ 3.5% processing charges
⦿ Form to apply: GHC 5.00 LPF (insurance): 2%
⦿ 0.25% per day is the loan default penalty.