This is given to a group of five members where each member is accountable for each other. This loan is paid by a team on a weekly basis: it has been
the greatest means of supporting the youth and women who don’t have collateral/ security.
The following applies to the acquisition of Group loan;
a. The maximum amount of principle sum guaranteed to the member shall not exceed 25 times the member‘s share capital.
b. Currently, the maximum amount of principle development loan is shillings one (1) million (UGX).
c. Any amount exceeding shillings UGX 1,000,000 shall require collateral security unless such a loan is fully covered by member’s share capital/fixed
deposits, and such member has not guaranteed anybody.
d. All group members shall be required to guarantee unless such loans are fully covered by member shares or fixed deposit amount and such a
member has not guaranteed anybody.
e. The maximum repayment period is six (6) months.
f. An affidavit signed by the society‘s lawyer is required if the payment period exceeds six (6) months.
g. Business assessment must be done before loan disbursement.
h. Weekly payments of installments are required.
i. Interest rate is 3% per month on flat rate.
j. Loan processing of 1% of loan amount shall be charged.
k. Insurance of 1% of total loan shall be charged.
l. Compulsory saving of 1% of loan amount shall apply to all members on a weekly basis