Lilongwe 07:30 – 16:30 4295
YOUTH ENTERPRISE LOAN

Contribute to socio-economic development. Promote job creation. Entrench entrepreneurship spirit

YOUTH ENTERPRISE LOAN

Group Loan

Rate: Interest - 4.8% pm Processing fee - 4.5% Life Insurance - 1.5% Collateral Insurance - TBA%

Target Market

Groups of 5 - 10 youth (including Graduates, school leavers, school dropouts with business interests)

Tenure

6 to 24 Months Grace period of up to 60 days from the day of loan disbursement

Thresholds

Minimum K5,000,000 to Maximum K30,000,000, 1st Time borrower from K5,000,000 2nd Time borrower from K10,000,000, 3rd Time borrower K20,000,000

Objectives
  • Contribute to socio-economic development.
  • Promote job creation.
  • Entrench entrepreneurship spirit
Benefits
  • Access to cheaper capital for starter-ups and established enterprises.
Requirements
  • National IDs for all members
  • Group constitution
  • Cross- guarantorship
  • Business profile for existing enterprises/business plans for start-ups
  • Bank statement for existing business
  • Letter of consent from guardians and their National ID
  • Identification letter from Village Head or local leader in an urban location
  • Sketch Map to meeting place and residence of leadership (Chairperson, Secretary and Treasurer)
Collateral
  • Mutual guarantee
  • Individual members pledge collateral to Leadership. Land (Registered and Unregistered Land)
  • Vehicles
  • Woodlot/Orchard
  • Plant and Equipment
  • Household Chattels
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