Hope and hard work through microfinance to fight poverty in Uganda

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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