Group Guaranteed Loans
G
roup loans, while 90% of JMC loans are designed in groups of 10-15 members which ensures better discipline possibly because of joint –liability, among the group members, the loan product is ideal for all enterprises who wish to access financial services but lack substantial collateral and guarantor. The product finances small business activities like mechanized Stone quarry, Market Vendors, food joints, etc.
The stone quarry has boosted the women’s finances over the years. The mechanized stone quarry is mainly women based business. Women move to their daily chore of excavating and crushing stones to earn a meal for the family. Women sit out in the shades hitting the rocks to make gravel. This is collected by middlemen in their trucks to feed into the flourishing construction industry in the country. Women have been able to pay school fees using the money that they earn from the quarry. Their only assets are the rocky hills. They may not have titles to show for it but they own these rocky lands because they receive a lease from the landowners.
- Organized into small groups of 10-15 members
- Different businesses are conducted within a group.
- Works well in sparsely populated areas
- The group is mainly driven by women
- There is Joint liability that ensures discipline
- Minimum loan amount is Ugx 300,000
- The loan period for group loan is up to 12months
- Faster loan processing
- No complicated Security.
- The relationship among group members is high.
- There is provision for the top-up.