The Solidarity Group Credit Scheme
Groups of 3 to 10 Gambian Women with the following characteristics:-
üAverage annual income of not more than D 6,000;
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 a Solidarity Group loan?
The group members must:-
Fbe registered as members of GAWFA, having paid individual membership registration fee of D100.00 each or group registration fee of D200.00 and paying D50.00 annual subscription in July of every year;
Fsave regularly for a minimum of three months either as individuals or as a group before qualifying to apply for a loan;
Fhave a savings balance equivalent to at least D75.00 each;
Fpay a group loan application fee of D50.00 and complete a solidarity group loan application form;
Fbe willing to guarantee one another with their individual savings and through peer support and pressure.
3. How much can a solidarity group borrow?
FAll members of a Solidarity Group will sign an agreement stating the conditions for repaying the loan.
FInterest of 2.09% per month will be charged on all loans.
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.
FSolidarity Groups are required to continue saving even when they have a loan.
FSolidarity Group members cannot withdraw their savings until all the members have repaid the loan in full 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 on the number of days that the instalment is late.
FAll members of a solidarity group must repay their loans together.
FA solidarity group which fails to repay a loan on time is liable to legal action. In such cases, the group will be responsible for the cost of legal action.
6. What else does a Solidarity Group need to know?
FA loan processing fee equal to 2% of the loan amount will be paid by the group before the loan is disbursed.
FA solidarity group member may withdraw from a group and become an individual borrower if she meets the conditions for an individual loan.