Disclaimer: Registration and Loan Application
Registration Application
To apply for a microloan with our company, a registration application is required, and a one-time fee of 12 USD (approximately 44,000 UGX) will be charged. This fee is applied to join the waiting list for a loan offer and is a mandatory step for all applicants. The registration fee is a standalone cost, and no further fees will be incurred at this stage. Please note that at least 80 percent of this fee goes directly back into our loan system to support future borrowers.
The waiting time to receive a loan may vary depending on the availability of lenders in our system, as new lenders are continuously added.
Loan Application
Our microloan system is specifically aimed at supporting women in Uganda. The reason for this is that women often face greater economic challenges and have limited access to traditional financial resources. By offering microloans to women, we strengthen their economic independence and enable them to create sustainable income sources, which contributes to improved living conditions for both them and their families.
Studies have shown that women who gain access to financial resources tend to reinvest in their families and communities, creating a long-term positive impact on community development.
Once registration is complete, you can apply for a microloan through our peer-to-peer lending system. This model allows individuals and entities to act as lenders, providing flexible and advantageous loan terms compared to traditional bank loans. We strive to offer loan conditions that are at least 5-10% lower than the interest rates of banks.
Currently, the interest rate for our microloans is 12%, with a setup fee of 2% of the loan amount. The administration fee for the loan is 2 USD per month for the duration of the loan. We offer loans between 500,000 UGX and 5.000,000 UGX, with a loan term of 3 to a maximum of 12 months.
Eligibility Requirements for Borrowers:
- Loans are offered only to women who are Ugandan citizens, between 18 and 60 years of age, and who are actively running a small business or planning to start one.
- If the business already exists, it must have been in operation for at least six months, or it should be a new business that is owner-managed.
- Borrowers must be able to demonstrate that they have sufficient income to manage monthly repayments
- Business plans and applications must be realistic and well-supported. We offer guidelines for the preparation of business plans on our website.
Guarantor
It may be that you as a borrower need some form of security. As a requirement for loan approval, each borrower must provide a guarantor. A guarantor is a person who guarantees that you will repay the loan. If the borrower is unable to meet their repayment obligations for any reason, the guarantor is legally responsible for repaying the loan on behalf of the borrower. This means that the guarantor assumes both legal and financial responsibility for the entire loan term.
To be accepted as a guarantor, the person must be a credible and reliable individual with a stable financial background. We recommend choosing someone with whom you have a close relationship, such as a family member or a friend who has strong financial standing and is willing to take responsibility for your loan if necessary.
Guarantor Requirements:
- The guarantor must be a Ugandan citizen and over 18 years of age.
- They must provide a valid copy of their Uganda ID.
- The guarantor should also have the ability to demonstrate their financial capacity to repay the loan in the event of a default.
Application Process
You can apply for a microloan by filling out an application form at our office or through an authorized microfinance agent. You can also download the form from our website. The following documents are required with your application:
- Copy of your Uganda ID
- Copy of your guarantor’s ID
- Business documents (if the business is already operational)
- A short business plan describing how the loan will be used
- Valid quotes from suppliers for the items or services to be financed with the loan.