Employee Guarantee Loans (EGL)

Employee Guarantee Loans (EGL) is a salary-based loan product primarily projected to benefit teachers in improve institution as well as government teachers.  Researched findings indicate that majority of teachers in private schools are limited to access microfinance and credit facilities due to unsatisfactory commitment from their employers as guarantors.  Emphasis is pointed to employers’ guarantee for their teachers to secure loan with a span of between six months to one year. UTCSCU shall encourage teachers’ in private schools to form SAACOs and training teachers’ in development projects with a high Internal Rate of Return (IRR). Terms of Reference (TORs) are hereunto;

  1. Salary based loan (employer guarantees the loan)
  2. Project proposal (2 pages) with business calculations
  3. Minimum of 500,000 and maximum of 3,000,000
  4. 6 months-2 years
  5. 11% interest per annuum
  6. SACCO receives 2% interest of 11% interest per annum from each member
  7. Introductory letter from L.C 1 and Certificate of registration