2 600 000 UGX (€610)
Two wives and around 20 children (it is an old cultural practice in Uganda to have more than one wife)
John is a farmer and owns a relatively large piece of land in Wakiso. On his land, he grows many different crops such as peanuts, bananas, coffee, potatoes and cassava. He also owns live cattle; goats, pigs, chicken and a cow.
Close to John’s farm there is an agent for Jesa Farm, a big farm that produces Yoghurt and other dairy products. Jesa Farm has a large demand for milk and there is an opportunity for John to deliver milk to the agent twice a day and receive a weekly payment. This opportunity implies a stable income, something that is unusual for a farmer. The profit margin for milk is also high. Therefore, John wants to increase his milk production and buy two more cows. The cows will cost 1.3 million Ugandan shilling each and John needs a loan to be able to make this investment. With three cows, John will be able to produce 36 litres of milk per day, enabling him to earn a gross income of around 0.5 million Ugandan shillings per week from the milk production alone. John therefore thinks that we will soon be able to pay back his loan.
Loan history with CML
|Year||Loan size||Loan term||Repayment history|
||350 000 UGX
||500 000 UGX
||800 000 UGX