SERVICES
Group Loans
CMF group loans are comprised of atleast 3 members to a maximum of about 15 members. The members are from the same community and have built enough trust amongst themselves to invest in improving their livelihoods together. In this relationship-based lending model, the members serve as each other’s collateral in place of traditional collateralized loans.
While each borrower receives their own amount, the entire group is responsible for the group’s collective repayment. Typically, a designated member would make payments on a set frequency, for example every two weeks, on behalf of the collective group’s loan. Loans can start as small as $50 per borrower.
During the lifetime of the group loan, the group members attend scheduled assembly meetings, where business progress and targets are reviewed. Furthermore, they receive business education lessons.
After the group’s loan is repaid, the group is able to take out another loan. Typically, as individual borrower’s small business grows so does its need for more capital. Within a period of time, businesses usually grow to require a loan size of up to several hundred dollars.
Once individual borrowers reach a higher borrowing capacity, they would branch off the group loan model and take out an individual loan.
Individual Loans
CMF individual loans are for higher amounts and reserved for premium clients. Premium clients are individuals who have been with CMF for previous loan cycles, and have an excellent repayment record. Premium clients are also new clients to CMF who can meet qualification criteria. Premium client loan amounts are larger are made on an individual basis, usually to be paid over the course of a year with monthly installments.
Typical individual loans start at over Tsh 2,500,000 and are collateralized like a traditional loan.
Home Improvement Loans
CMF Home Improvement Loans were created to help our clients improve the safety and sanitation of their homes. Home improvement loans help our clients make improvement to their homes in order to protect them against flooding during the rainy seasons. Additionally, our home improvement loans help our clients to repair homes that are damaged by floods or other natural disasters.
Without CMF, home improvement projects would take years to complete due to lack of initial funds, and often times another part of the home would deteriorate before the project was complete. Today, a client can become eligible based on necessity and the value of their home that could be also be used as collateral.
Agricultural Loans
CMF Agricultural Loans offer a means for our clients to purchase seeds, compost, and other material needed for farming.
The loan can be modeled as a group loan or as an individual loan. However, final loan payments are made 90 days after the harvest to ensure that client has enough time to sell their crops. If the agriculture loan is modeled as an individual loan, it may need to be collateralized.
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