The Individual Credit Scheme
1. Who Can Participate?
Individual Gambian Women with the following characteristics:-
üAverage annual income of not more than D 10,000;
üEngaged in a micro or small scale enterprise or planning to start one in any economic sector (agriculture, manufacturing, trading, services);
üNon-Board members of GAWFA;
üNon-Staff members of GAWFA.
üResident in a rural village or urban town.
2. What are the conditions for an individual loan?
The applicant must:-
Fbe a member of GAWFA, having paid a membership registration fee of D100.00 and paying D50.00 annual subscription in July of every year;
Fsave regularly for a minimum of six months before qualifying to apply for a loan;
Fhave a balance of at least D820.00 in the savings account;
Fpay a loan application fee of D25.00 and complete a loan application form;
Fhave a person well-known to her to guarantee the loan. The guarantor must confirm his/her source of income and means of guaranteeing the loan. The applicant may guarantee herself by producing evidence of owning property such as land, machinery, jewellery, etc.
3. How much can an individual borrow?
FA borrower and her guarantor will sign an agreement stating the conditions for repaying the loan.
FInterest will be charged at the rate of 2.09% per month or 25% per annum.
FLoan principal and interest will be repaid monthly from three to twelve months.
FThe General Manager or Board of Directors may approve grace period and longer repayment periods depending on the use of the loan.
FIndividual borrowers are required to continue saving during their loan repayment period.
FA borrower cannot withdraw her savings until her loan is fully repaid with interest.
FA penalty of 10% per annum will be charged on principal and interest instalment that is late. The penalty will be charged daily for the number of days that the instalment is late.
FAn individual borrower who fails to repay her loan on time is liable to legal action with her guarantor. In such cases, the borrower will be responsible for the cost of legal action.
6. What else does an individual borrower need to know?
FA loan processing fee equal to 2% of the loan amount will be paid by the borrower before the loan is disbursed.