VSLA Loan
This product is designed for village savings and loans associations to access credit for on-lending to their members.
Features
- Group quality shall be ranked at least 75% using the VSLA Group Evaluation Tool
- About 75% of membership constitute youth and women
- The VSLA should have done at least 1 share-out at the time of applying the loan.
- Group must open and operate account with the bank for at least 3 months with active account. (Minimum of 2 deposits into VSLA account with the bank every month); however, an account that is less than 3 months but with regular weekly savings for 6 continuous weeks, may qualify for a loan
- At least 75% of the VSLAs members should agree to borrow from the bank
- The maximum loan period shall be 12 months (based on the key activities of the VSLA members) but before the next share-out date from the date of the loan disbursement to the VSLA.
- The VSLAs shall deposit at least 10% of weekly savings towards the monthly loan repayments;
- Loan repayment shall be monthly and deductible from the VSLA Savings Account/Loan Servicing Account with the bank;
Benefits
- Access to credit for on lending
- No upfront loan charges
- Competitive interest rate