Youth Loan MSE Targets


Graduates and non-graduates living in rural or urban areas of the company‟s operational area who established one of the following formal business entity: Cooperatives, Partnership, Share Company and Private Limited Company.

Target

Graduates and non-graduates living in rural or urban areas of the company’s operational area who established one of the following formal business entity: Cooperatives, 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
  • Age between 18 – 34
  • unemployed youth and able to present evidence from concerned body (PA)
  • Willing to be governed by the rules of cross guarantee (to be severally or jointly liable) for any default in the group.
  • Willing to present family commitment guarantee
  • Permanent resident of the operational area of the lending branch and able to present ID from Ganda
  • 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.
  • Credit worthy business and lawful
  • Good character including the clients credit history (if any), household stability and support as well attitude towards credit repayment
  • Good management competencies
  • MSE Certificate and Renewed Business License
  • Appropriate working and sales outlets
  • Job related experience and skill
  • Willing to accept other OCSSCO‟s credit policies and procedures

 

Required Documents to be fulfilled

  • 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, and Partnership 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 revolving fund MSE borrowers (Cooperatives, S.Co., Plc, and Partnership) 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 MSEs, S.co, Plc, or Partnership revolving fund MSE owner required to submit renewed identity card. The cooperative MSE 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 enterprise 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 MSEs excluding Sole proprietorship).
  • Pro-forma invoice, if applicable
  • Tax Identification number (TIN), 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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