Micro, Small and Medium Enterprise Loan (MSEL)


MSEL targets higher education institution graduates as well as other unemployed youths or individuals who establish one of business entities such as Cooperatives, Sole proprietorship, Partnership, Share Company and Private Limited Company.

Targets

Technical and Vocational Schools graduates, colleges and universities graduates as well as other unemployed youths or business persons living in rural or urban areas of the company’s operational area who establish one of the following formal business entity: Cooperatives, Sole proprietorship, Partnership, Share Company and Private Limited Company

 

Eligibility Criteria

  • Free from any debt i.e. members must not have any outstanding or non-performing loan
  • Permanent resident of the operational area of the lending branch and able to present ID from Ganda.
  • Age between 18-60
  • Willing to save the required pre-loan saving i.e. should save 10% of the required loan as a pre-loan saving and abstain to withdraw until the loan is fully repaid.
  • Viable business plan or project proposal
  • Credit worthy business and lawful
  • Able to make legal contract
  • Good character including the clients credit history (if any), household stability and support as well attitude towards credit repayment
  • Good management competencies
  • Willing to present matching collateral
  • MSME Certificate and Renewed Business License
  • Appropriate working and sales outlets
  • Job related experience and skill
  • Willing to present financial statement prepared by legally authorized accounting firm but for loan request greater than 2million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing MSMEs)
  • Willing to accept other OCSSCO‟s credit delivery policies and procedures

 

Required Documents

  • Credit Application: The loan application should be stamped and signed by the chair person in case of cooperatives and in case of S.co, Plc, Partnership and sole proprietorship it should be signed by the General Manager.
  • Pre-loan saving: borrowers are required to save 10% of the loan request as a pre-loan saving.
  • Renewed Business/Investment License: All MSMEs (Cooperatives, S.Co., Plc, Partnership and Sole proprietorship shall be required renewed business license for the period the loan is requested
  • Business plan with forecasted cash flow statements: All contents of the business plan should be recorded and posted properly. The figures on the business plan should be properly tallied and posted to each subsection accurately.
  • Evidences of working premises: The working premises can be either rented, owned, provided by the municipality or other source. If rented, the rental agreement or if provided by municipality temporarily ownership certificate or if it is from other source ownership certificate should be presented.
  • Members renewed Identity Card: Each member of cooperative MSMEs, S.co, Plc, Partnership or individual MSME owner required to submit renewed identity card. The cooperative MSME members should be from the same town /Aanaa.
  • Evidences of Skill or Experience: Operators or member/s should have experience, skill or training of the job that the MSME has planned to undertake. The evidence that certifies the skill/experience becomes more important especially, if the job is technical and requires special skill.
  • Registered memorandum and Article of associations (for all types of business including cooperative MSMEs excluding Sole proprietorship).
  • Coy of renewed identity card of individual applicant and his or her spouse (if married). Marriage certificate is also required.
  • Financial statement prepared by legally authorized accounting firm but for loan request greater than 2million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing MSMEs)
  • Tax payer registration certificate, if applicable
  • Collateral
  • pro-forma invoice, if applicable
  • Insurance agreement for loan collateral (right after loan is approved), if applicable

 

Collateral Options

  • House Collateral
  • Salary Guarantee
  • Second level land certificate (rural land ownership certificates)
  • Credit Guarantee Scheme
  • Institutional Guarantee letter (town municipality, and share company etc)
  • Time deposit certificate /Evidence of blocked account
  • Vehicle Guarantee
  • Mix of any type mentioned above

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