Regular Loan

The Union Loan Program is designed to support self-selected groups of individuals, known as "Unions", who are engaged in small-scale businesses, either within the same or different industries. Members of a Union access loans individually but are bound by "group guarantees", ensuring collective responsibility for repayment.

Target Clients:  

This program is tailored for economically active individuals, including low-income earners, micro-enterprise owners, and small-scale business operators.

Key Features:  

- Loan Facility Range: Minimum of ₦20,000 to a maximum of ₦300,000.  

- Lending Structure: Individual lending with "group liability".

  - Loan Duration: 25 weeks (approximately 6 months).  

  - Grace Period: 2 weeks before repayment begins.  

- Interest Rate: 4.5%.  

- Repayment Plan: Weekly installments. 

- Eligibility: Borrowers must be members of a registered Union.  

- Fees:  

  - Insurance fee: 1.5% of the loan amount.  

  - Administrative fee: 1.5% of the loan amount.  

- Initial Savings Deposit: 5% of the approved loan amount, required as a precondition for loan disbursement.

Summary:

This program is structured to provide financial support to micro-entrepreneurs while fostering a sense of collective responsibility and accountability among Union members.