MICRO-FINANCE



INTRODUCTION

Pursuant to Section Six of the Banking and Financial Institutions Act 2006, Yuneda Company Limited will require reasonable credit review procedures to be conducted in accordance with standard commercial practices for the purpose of determining the ability of applicants to meet their financial obligations.

In general, all applicants requesting Yuneda services will be subject to a financial review in accordance with Yuneda standards for determination of creditworthiness.   Such review procedures are designed to protect Yuneda members from undue exposure to losses that could arise from customer defaults.  Applicants will be required to submit all information necessary for conducting their reviews as requested by the company.   As a result of an applicant’s financial review several parameters will be determined.  These parameters include: the amount of potential financial exposure associated with conducting business with an applicant, the amount of credit to be extended to an applicant, if any, and the amount of direct financial assurance required for an applicant.

LOANS CATEGORIES

At its initial stage, Yuneda Company Limited provides four major loan categories, namely; Group Loans, Business Loans, Emergency Loans.

1. GROUP LOANS

- A group of 5 people
- The Group should be composed of at least 3 women and 2 men
- At least 3 members of the group should have fully registered businesses.
- Special attention is given to group of Disabled people and marginalized women
- Group loan would cutter for business purposes
- Group members have 100% mandate to nominate and expel own group members
PURPOSE:
Developing ventures, working capital financing, business office rentals, etc
Size of the Facility:
·         Amount: Minimum per individual          Tsh. 50,000/=
·         Amount:  Maximum per individual        Tsh.  1,000,000/=
Fees and Charges:
          Application fee:     3% Minimum Tsh. 2,500/= paid upfront per individual
          Legal Fee:                2% Minimum   Tsh. 3,000/= Paid upfront per individual
         Loan Insurance:       1.5% Minimum Tsh.  1,500/= Paid upfront per individual
         Interest (effective rate)     7% per month per individual

Repayment period: 1 – 6 Months (Equal Installments)
Repayment mode: Individual members deposit directly to the company bank account and handover payment slips to their leaders for collection and presentation to the respective Credit Officer.
Documents required:
1.      Six (6) months Bank Statement (for individuals with bank account: this will add credibility)
2.      Copy of passport/Voters ID/New driving license
3.      Domicile evidence; introduction letter from Ward offices(for each member)
4.      Copy of business license (For members with registered businesses)
5.      Copy of TIN # (For members with registered businesses)

6.      Duly signed application/agreement form
1.       Three (3) Photo passport size (each member)
2.      Original collateral title deed or document: for motor vehicle, should not be older than 10 years (2003 year up wards)
3.      Duly signed Ownership transfer contract
4.       For vehicles: duly signed TRA motor vehicle ownership transfer form A12
 Processing time:

Loan will be approved within a week after satisfactorily submission of all documents.

2. BUSINESS LOANS

PURPOSE:
Business loan aims at adding value to business sole-proprietorship, Partnership, Co-operative Societies and Companies. The values sought include working capital requirements, business premises rentals, inventory and raw-materials purchase, etc.
Size of the Facility:
·         Amount: Minimum          Tsh. 100,000/=
·         Amount:  Maximum         Tsh.  2,000,000/=

Target Customers: All business persons who operated businesses for not less than 6 months.
Fees and Charges:
         Application fee:     3% Minimum Tsh. 10,000/= paid upfront
         Legal Fee:                2% Minimum   Tsh. 10,000/= Paid upfront
         Loan Insurance:       1.5% Minimum Tsh.  5,000/= Paid upfront
         Interest (effective rate)      12%  per month

Repayment period: 1 – 3 Months (Equal Installments)
Repayment mode: Bank authorization deduction/Direct deposit into the company’s bank account.
Documents required:
1.      Certified copy of business license
2.      Copy of TIN number
3.      Copy of certificate of incorporation from BRELA
4.      For the Company: memorandum and articles of association
5.      Copy of lease agreement with dully stamp duty paid (Business premises)
6.      Six (6) months Bank Statement (for the business account)
7.      I.D/ or copy of passport/New driving license
8.      Domicile evidence; introduction letter from Ward offices
9.      One (1) Guarantor with permanent settlements and should have income evidence that show repayment capability in case the customer defaults
10.  For Couples, client should have his/her spouse’s consent to use family belongs as loan collateral
11.  Duly signed application/agreement form
12.   Three (3) Photo passport size (applicant)
13.  Two (2) photo passport size (Guarantor)
14.  Original collateral title deed or document: for motor vehicle, should not be older than 10 years
15.  Duly signed Ownership transfer contract
      16. For vehicles: duly signed TRA motor vehicle ownership transfer form A12

   Processing time:

Loan will be approved within a week after satisfactorily submission of all documents.


                        3.EMERGENCY  LOAN
PURPOSE:
Personal needs, such as home appliances, school fees, holidays, rents, advance salary, open up a venture, purchase plots, purchase vehicles, etc.
Size of the Facility:
·         Amount: Minimum          Tsh. 50,000/=
·         Amount:  Maximum         Tsh.  500,000/=

Target Customers: All confirmed employees (in both Government and private sector). The employer should guarantee his/her employee and take full responsibility of repayment from salary deductions.
Fees and Charges:
          Application fee:     3% Minimum Tsh. 2,500/= paid upfront
          Legal Fee:                2% Minimum   Tsh. 3,000/= Paid upfront
         Loan Insurance:       1.5% Minimum Tsh.  1,500/= Paid upfront
         Interest (effective rate)     12% per month

Repayment period: 1 – 3 Months (Equal Installments)
Repayment mode: Direct deduction from Employee salary.
Documents required:
1.      Salary slips for the past recent 3 months
2.      Six (6) months Bank Statement (where salary is paid)
3.      I.D/ or copy of passport
4.      Domicile evidence; introduction letter from Ward offices
5.      One (1) Guarantor with permanent settlements and should have income evidence that show repayment capability in case the applicant defaults
6.      For Couples, client should have his/her spouse’s consent to use family belongs as loan collateral
7.      Duly signed application/agreement form
8.       Three (3) Photo passport size (applicant)
9.      Two (2) photo passport size (Guarantor)
10.  Original collateral title deed or document: for motor vehicle, should not be older than 10 years.
11.  Duly signed Ownership transfer contract
12.   For vehicles: duly signed TRA motor vehicle ownership transfer form A12
13.  Copy of work contract and letter of confirmation
14.  Employer I.D/passport (certified copy) 

Processing time:


Loan will be approved within 24 working  hours after satisfactorily submission of all documents.
Subscribe to: Posts (Atom)