Solidarity Group Loan

CML provides loans to groups of 5-20 women, youth and men. The loans are disbursed individually to each members’ business but the group members are jointly responsible for repayment. This is called co-guarantee by CML and is used instead of normal collateral. Each group member attends training sessions in additions to the loans where they among other things learn loan management, customer care, business planning, record keeping. These training sessions take place in the community at a designated place of convenience to all members or at the branch for those that stay close to our offices. All group members are also required to save money before they take the loan. The groups meet with a credit officer at least once every month to review their progress.

Repayment: weekly
Loan term: 4 – 6 months
Interest rate: 30 % per annum
Average loan size: 500 000 UGX (about $150)

Small Business Loan

This product targets individual entrepreneurs who have been in business for more than one year and are seeking capital to boost and expand their business. The loans are used by for example shop owners to increase the product range or make purchases in larger quantities, something that in general give them a better price. Also acquiring business assets to increase productivity, such as machinery or transportation facilities, are common uses of the loans. Business loans are often renewed if successful and the size and term of the loan is increased for the second loan.

Repayment: weekly
Loan term: 6 - 18 months
Interest rate: 30 % per annum
Average loan size: 2 000 000 UGX (about $600)

Agricultural Loan

Agricultural loans are targeted towards small scale farmers. Farming is different from many other businesses since incomes depend on season to a much larger extent. This needs to be reflected in the repayment schedule. Agricultural loans are generally disbursed during planting season with purposes such as buying more seeds and fertilizers, renting larger land areas or employing extra workers in order to increase the yield. Repayment is then done during the harvesting season. CML encourage farmers to have multiple income streams such that they do not solely depend one farm product.

Repayment: monthly or seasonal
Loan term: 6 - 12 months
Interest rate: 30 % per annum
Average loan size: 1 000 000 UGX (about $300)

In Kind/ Asset Loan

The conventional microfinance institutions normally give loans in form of cash but this can sometimes be problematic since many clients are not used to holding big amounts of cash. As an alternative to its Business Loan, CML has therefore designed an In-kind/Asset Loan product. This product mainly targets young entrepreneurs that have little or no experience of using and managing borrowed funds. CML help the clients to acquire business assets that they can utilize immediately such as motorcycles, solar panels, carpentry tools, fridges and driving licenses while being able to repay the loan in comfortable installments. This type of loans are also given to clients that want to buy assets of higher value such as vehicles.

Repayment: weekly
Loan term: 12 months
Interest rate: 30 % per annum
Average loan size: 1 000 000 UGX (about $300)

School Fees Loan

In Uganda, public schools are few and of bad quality. The absolute majority of the children therefore go to private schools. The school fees, generally paid in the beginning of every semester is an economic burden for many poor families. Even though sending children to school should be considered as an investment, the return is distant in the future. Especially in families with many children, other things sometimes need to be prioritized over sending all children to school. School fees loans are disbursed in the beginning of the semester to parents with difficulties of paying the whole sum at once. The loans enables them to smooth out the expense for schooling over a longer period and thereby afford schooling for all of their children.

Repayment: weekly
Loan term: 4 months
Interest rate: the goal is 0 % per annum but currently there is not enough funds to provide all school fees loans at no interest rate
Average loan size: 400 000 UGX (about $120)

Solar Loan   

The CML staff have realized that for many clients in the rural area, the lack of access to electricity or other forms of power is one of their greatest challenges. About 20% of rural household budgets go to paraffin, wax candles, and dry cells. This represents a million dollar business, but it does not empower Ugandans since most of these products are imported. The country’s paraffin consumption for lighting alone is 1.7 million barrels of oil per day, greater than the oil production of Libya. Different solar products CML offers loans for buying solar products to help the community members live a better life.

Repayment: weekly
Loan term: 6 – 12 months
Interest rate: 30 %
Average loan size: 1 000 000 UGX (about $600)

Be a lender without borders

Uganda is a country full of potential ready to be unleashed. Take the opportunity to do socially beneficial investments with a competitive interest rate.