Charles owns a piece of land where he grows different crops. This past season, he grew beans and sweet potatoes. Unfortunately, only sweet potatoes could be harvested due to drought.
As a compliment to farming, Charles has a Boda boda (motorbike taxi). This is a valuable source of income for him as it is independent of the weather. The Boda is also used for transport of crops. In the future, Charles plans to enter the coffee trading business. He will then spend more time on his Boda boda transporting coffee between local producers and markets.
Charles wants to buy a new Boda boda and rent out the old one to another farmer. This will increase Charles’ income and make him less dependent on the unpredictable income from farming. A Boda boda costs around 4 million Ugandan shillings (1 200 $) and Charles need a loan to be able to buy it.
Loan history with CML
|Year||Loan size||Loan term||Repayment history|
|2011||800 000 UGX||6 months||Fully repaid|
|2013||1 000 000 UGX||12 months||Fully repaid|
|2015||1 500 000 UGX||12 months||Fully repaid|