Business Loan (BL)


BL is a loan type that offered to individual or group business runners.  The operators need to present matching collateral for their loan request i.e. obviously legal urban house.

Target

  • The main target of business loan is any individual licensed to run a business individually or jointly.

Eligibility Criteria

  • Permanent resident of the operational area of the lending branch and able to present ID from Ganda
  • Good character including the clients credit history, household stability and support as well attitude towards credit repayment
  • Age between 18 – 60
  • Willing to accept other OCSSCO‟s credit policies and procedures
  • the business to be financed is legally and socially acceptable
  • Viable business plan,
  • Renewed Business License,
  • Job related experience and skill for a none graduate business runners,
  • Job related educational background and certificates of short term trainings in relation the job by TVET or other recognized bodies
  • Appropriate working and sales outlets
  • 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 Business)
  • Willing to save 10% of the required loan as a pre-loan saving
  • Willing to present matching collateral,

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, Partnership and sole proprietorship it should be signed by the General Manager.
  • Renewed Business/Investment License: All borrowers (Cooperatives, S.Co., Plc, Partnership and Sole proprietorship) shall be required renewed business license for the period the loan is requested
  • 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.
  • Copy of renewed identity card of individual applicant and his or her spouse (if married). Marriage certificate is also required.
  • Evidences of Skill or Experience: Operators or member/s should have experience, skill or training of the job that the borrower 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 other than Sole proprietorship).
  • Pre-loan saving: borrowers are required to save 10% of the loan request as a pre-loan saving.
  • 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.
  • 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 business)
  • Tax payer registration certificate, if applicable
  • If the collateral is house it should supported by photos taken from different angles.
  • pro-forma invoice, if applicable
  • Insurance agreement (right after loan is approved), if applicable
  • partnership agreement like subcontracting agreement and others, if applicable

Collateral Options

  • House Collateral
  • Salary Guarantee
  • Time deposit certificate /Evidence of blocked account
  • Vehicle Guarantee
  • Mix of any type mentioned above

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