Working Capital Loans (Group with in a SACCOs)

Working Capital Loans (WCL) is a group loan product based on a collection of group guarantees. By classification, a majority of teachers have no collateral security. A majority have no businesses whereas other have businesses with limited capacity.  Working Capital Loans (WCL) was developed to enhance teachers’ access to microfinance and development training under the collective responsibility loan management theme and secured through UTCSCU registered SACCOs. Terms of Reference (TORs) are hereunto;

  1. Group loan guaranteed by each selected group member
  2. Beneficiaries are members of the same SACCO
  3. Minimum of 4 member and maximum of 5 members under the collective responsibility principle
  4. Project proposal (2 pages) with business calculations
  5. Minimum of 500,000 and maximum of 2,000,000
  6. 1-3 years
  7. 11% interest per annuum
  8. SACCO receives 2% interest of 11% interest per annum from each member of what they have borrowed
  9. Introductory letter from L.C 1 and Certificate of registration