Group Loan
Quicken Microfinance > Group Loan
Group Loan
The idea behind this product is to assist small-time traders who require capital to expand their operations but are unable to satisfy the onerous and demanding requirements of commercial banks or who lack the collateral necessary to secure a loan. These small-time traders can access loan facilities thanks to the group concept’s self-guaranteed system. A minimum of five and a maximum of ten people per group are permitted. QML is very interested in empowering women, so this product is primarily marketed to women, though men are not excluded. Additionally, it is aimed at those who are employed in groups.
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.