Objective
The objective of the loan is to assist dedicated church workers to have easy access to capital required to start or improve his/her small business
This loan is a group loan targeted towards assisting church workers within a particular department of big church. The church workers in such department cannot be less than 20 people. Each qualified member of the department is entitled to access the loan by virtue of his/her membership of the department
The loan can only be guaranteed by group members within the department. No outsider of the group is allowed to join or are the ones that guarantee each other. The loan is given to them as a group loan to be disbursed or allocated to qualified members based on the departmental executive recommendation
Loan Payment
The payment is done by the department as a group not individually by members. The departmental executives take responsibility for the collection and repayment in the name of the department in the name of the department
If any member refuses to pay, other members within the department will have to contribute on behalf of the defaulting member. Then the entire department will take the responsibility to press upon the defaulting member to pay his/her outstanding loan balance
Benefits
- Immediate cash made available to all interested departmental members at once
- There is no need for any special collateral by members because of the group solidarity to everybody pay is what use as their guarantor
- Departmental members will be more dedicated to Gods service or Church activities as a result of the opportunity of accessing a loan facility
- The potential of getting new members to join the departments as their interest in securing loan
- Dependency ratio is expected to fall because of the number of people that are now gainfully employed or engaged
Interest Rate
An attractive interest rate of about 4% per month which is about 2% lower than the average loan in the market
Amount
- An applicant (church worker) should not take more than GHc5,000 per loan scheme
- The loan must be recommended and approved by the department executives for any group member to benefit.
- The group loan agreement must be sign by the executive for the department
- Collection and recovery shall solely be the responsibility of the group executives and direct payment is made to the group savings account with Unimas MF from where deductions shall be made at regular intervals.