The concept of this product is to help petty traders who need funds to boost their businesses yet cannot meet the tiresome and demanding requirements of the commercial banks and do not also have collaterals to secure their loan facility. The group concept helps these petty traders to access loan facilities by self-guaranteeing for themselves. The number of persons per group will be limited to a minimum of 5 and a maximum of 10. Because IML is very interested in empowering women, this product is mainly targeted at the market women however, men are not left out. It is also targeted at people who work in group’s example the market weavers of Bolga, the par boilers of Bolga, etc.
- A minimum number of people in a group must be five (5) and a maximum of ten (10).
- The group members must have an official meeting place and should meet not less than 3 times with the relationship officer before disbursement.
- The must-have executives [Chairperson, Secretary & Treasurer] whose residences, workplaces and their guarantors must be visited by the credit officer and his/her team members
- The residence and/or workplace of each member must be known by the credit officer and his team members
- Loan is group guaranteed.
- Loan Duration: 3 – 4 months
- Loan Repayment Frequency: weekly
- Grace Period: 2 weeks after disbursement
- Loan Amount ranges from GH¢ 500 – GH¢5,000
- Group guarantee is required for individuals within a group.
- Loans terminated before maturity attract one month of additional interest plus outstanding principal.
- Interest rate: NORTH 4.5%, SOUTH 5% (monthly)
- Lien: NORTH 25%, SOUTH 25%
- Processing fees: 3.5%
- Application form: GH¢ 5.00
- LPF (insurance): 2%
- Loan default penalty – 0.25% daily
- 3 passport pictures of a new applicant (for account opening forms, loan forms, and passbook).
- Valid National ID card
- Copies of business registration documents (if any)
- Copy of tenancy agreement (house and shop)
- Access to Business Advisory services
- Group can serve as a social guarantee
- Access to financial literacy training
- Access to a revolving facility