Professional Documents
Culture Documents
ADILI LOANPOLICY Operation
ADILI LOANPOLICY Operation
COMPANY LIMITED
LOAN POLICY
AND
PROCEDURE
MANUAL
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TABLE OF CONTENTS
1.0 INTRODUCTION ........................................................................................................................................................................ 2
2.0 GENERAL POLICY STATEMENT ................................................................................................................................................ 2
3.0 LOAN PRODUCTS DEFINITION .............................................................................................................................................5
3.1 GROUP LOAN ..............................................................................................................................................................................5
3.3 SALARIED LOAN. ........................................................................................................................................................................5
3.5 INDIVIDUAL LOAN ......................................................................................................................................................................5
3.6 SACCOS LOAN ............................................................................................................................................................................5
3.7 VILLAGE COMMUNITY BANKS (VICOBA) LOANS ...................................................................................................................6
3.8 QUICK LOANS .............................................................................................................................................................................6
4.0 ELIGIBLE APPLCANTS ............................................................................................................................................................6
4.1 GROUP LOAN ..............................................................................................................................................................................6
4.2 CORPORATE GROUP LOAN .......................................................................................................................................................6
4.3 SALARIED LOAN ........................................................................................................................................................................6
4.4 BUSINESS LOAN.........................................................................................................................................................................6
4.5 INDIVIDUAL LOAN ...................................................................................................................................................................... 7
4.6 SACCOS LOAN ............................................................................................................................................................................ 7
4.8 QUICK LOAN ................................................................................................................................................................................ 7
5.0 ELIGIBLE PURPOSE................................................................................................................................................................. 7
6.0 TERMS AND CONDITIONS ....................................................................................................................................................... 7
6.1 GROUP LOAN .............................................................................................................................................................................. 7
7.0 CORPORATE GROUP LOAN ................................................................................................................................................. 15
Pricing Structure. .................................................................................................................................................................. 15
Other costs (non income) .................................................................................................................................................... 15
Collateral .................................................................................................................................................................................. 15
Method of payment ................................................................................................................................................................ 15
Duration and range of the loan .......................................................................................................................................... 15
8.0 QUICK LOAN ........................................................................................................................................................................... 19
Pricing structure. .................................................................................................................................................................. 19
Method of payment ................................................................................................................................................................ 19
Duration and range of the loan .......................................................................................................................................... 19
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Terms of payments ................................................................................................................................................................ 19
Collateral .................................................................................................................................................................................. 19
1.0 INTRODUCTION
1.1 ADILI MICROFINANCE COMPANY LTD (AMFC)was established in 2014 with the goal of providing loans and training to both
urban and rural communities. ADILI MICROFINANCE COMPANY LTD (AMFC) has to promote grassroots economic
development by providing loans to entrepreneurs, to develop local business enterprises, accomplish social and community
activities. ADILI MICROFINANCE COMPANY LTD (AMFC) has social responsibility by elevating poverty for enhancing grass
root access to funds and business training.
2.1 ADILI MICROFINANCE COMPANY LTD (AMFC) Loan Policy and Procedure Manual is the concise Guidelines and procedures by
which ADILI MICROFINANCE COMPANY LTD (AMFC)shall disburse loans. ADILI MICROFINANCE COMPANY LTD (AMFC)loan
policy and procedure Manual is a permanent document therefore any changes to be made will be under the instruction of the
Board of Directors meeting which will review this policy each calendar year to provide guidance and recommendations
and/or approve any changes to this policy.
2.2 ADILI MICROFINANCE COMPANY LTD (AMFC) Loan and Policy and Procedure Manual were developed by the Board of
Directors with the guidance and expertise from microfinance consultants. However, ADILI MICROFINANCE COMPANY LTD
(AMFC)will carefully comply with any rules, laws, or regulations provided by the local and Central government to ensure
sound financial practices and the fair extension of credit to the target beneficiaries.
NOTE: For smooth operations of ADILI MICROFINANCE COMPANY LTD (AMFC)) business activities together with loan policy and
procedure Manual, the Company has other Manuals including ADILI MICROFINANCE COMPANY LTD (AMFC)Operational and
Internal Control Manual, ADILI MICROFINANCE COMPANY LTD (AMFC)Accounting Manual, ADILI MICROFINANCE COMPANY LTD
(AMFC)Human Resources Manual, Credit Officers Training Manual and Entrepreneurs Training Manual and Management
Information System Manual. These Policies provides directions. But in order to make things happen all ADILI MICROFINANCE
COMPANY LTD (AMFC)staffs must properly read and understand the ADILI MICROFINANCE COMPANY LTD (AMFC)Policies for
easy implementation of the same.
2.3 ACTORS IN PROMOTING, TRACKING AND SUPERVISING ADILI MICROFINANCE COMPANY LTD (AMFC)’S LOANS
2.3.1 BOARD OF DIRECTORS MEETINGS
• Higher Level diplomacy and referral of all disputes.
• Develops and approve the Company policies and put in place the internal control systems
• Approves the annual budget and business plan.
• It is the senior loan committee consists of Executive Chairman, General Manager, Director of Operations, Director of
Finance; the committee should meet irregularly to approve loans.
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• The Board Meeting should meet annually to report market research findings, evaluate current products, and discuss the
addition of additional products. Other activities are to form products and review relevant policies.
• It is highest loan referral committee for all loans disputes.
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• Any other duties to be assigned by Credit Manager.
2.3.12 CASH OFFICER
• Transmits cash from the ADILI MICROFINANCE COMPANY LTD (AMFC) OFFICE to the Bank
• Receives cash from the Teller on daily basis with daily spot checks for accuracy
• Deposit client repayments (principle, interest, registration fees, loan administration fees and savings guarantee
fund) to the Vault
• Maintain Vault register and record of cash issued and received from the Teller.
• Custodian of valuable instruments and maintains instrument register.
• Perform any other duties assigned by the Branch Accountant.
2.3.12 TELLER
• Receive repayments (principle, interest, registration fee, loan administration fee, stationary fee and savings
guarantee funds) directly from clients.
• Verify client’s repayments with daily repayment schedule
• Maintain records of cash transferred to and from Cash Officer
• Submit a daily till sheet of cash collection and submit to the Branch Accountant/Operations Manager.
• Perform the duties as receiving and paying cashier
• Perform any other duties to be assigned by cash officer.
NOTE: For a more detailed Job descriptions for the employee listed above or for staff members not listed above
please refer to Human Resources Manual.
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3.7 VILLAGE COMMUNITY BANKS (VICOBA) LOANS
The ADILI MICROFINANCE COMPANY LTD (AMFC)Village community Banks loan is issued to the solidarity groups of 25 clients and has
their own model of operations. These solidarity groups have to be found in rural settings.
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4.5 INDIVIDUAL LOAN
✓ All applicants must be 18yrs of age and above.
✓ All applicants of required to provide a viable plan or business ideas, which will be assessed by credit officer and credit
manager.
✓ Unless otherwise stated the applicant who borrowed from a lending institution in the past, he/she must have repaid
his/she prior lion (s) on time.
✓ The client have to pay loan Insurance cover (LIC) direct to Teller so as to cover their loan against the losses arises from
death of client, fire, burglary and other natural disasters. The Insurance will also cover for funnel costs of the client and/or
with his/her spouse i.e. father, Mother, and children. The rate of insurance cover will be determined by the Insurance
Company from time to time
✓ The client shall pay penalty of 10% for late payment direct to teller and fines direct to the class leaders for late coming,
absenteeism, unauthorized class vacations. The rate of fines will be determined by the class during training and money
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collected will be kept on the class special Account and not to be as ADILI MICROFINANCE COMPANY LTD (AMFC)source of
revenue.
✓ All Costs including legal mortgage, Land rents, Search fee, Valuation fee, Legal fee, property insurance cover and Auction
fee will be born by a client.
Collateral
✓ Group guarantee.
✓ Lien over Savings Guarantee Fund.
✓ Pledge items, both household items, office furniture or inventory
✓ Sales receipt (stakabadhi Ghalani).
✓ Government leader’s guarantee.
✓ Share certificates from Dar Es Salaam Stock of Exchange.
Method of payment
✓ Weekly repayment by cash at the class meeting.
Duration and Range of the loan
✓ There are Five (5) ordinary Group and two (2) Corporate Group loan Cycle
Loan process
Group formation
The Credit Manager has to organize a large meeting (symposium) by advertising, going door to door and/or liaise with the local
government leaders to organize the meeting. During the meeting the prospective clients shall be taught on the Historical background
of ADILI MICROFINANCE COMPANY LTD (AMFC’s, business activities, Membership rules and regulations; Products offered, Loan terms
and conditions.
Pre-registration meeting with prospective clients will be held at ADILI MICROFINANCE COMPANY LTD (AMFC)branch. A more detailed
description of the initial information meeting can be found in ADILI MICROFINANCE COMPANY LTD (AMFC)’s Client Training Manual.
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The group is comprised of 5 clients involved in income generating activities operating at one business center and near to ADILI
MICROFINANCE COMPANY LTD (AMFC)branch. The group is selected by persons who enjoy mutual trust and confidence. The close
relatives i.e. parents, children and spouse are not required to be members of the group. Each member has to provide two passport
size pictures, one to be affixed at registration form and another to the identification card.
Each group shall select Chairman, Secretary/Treasury who will be members of Class executive committee (Comprises of two
members from each group) and will serve for maximum term of twelve months. However committee member can be re-elected.
Class members will elect the chairperson, secretary/treasury who will lead the class management committee and the committee
shall be assisted by Credit Officer. The class management committee will serve for maximum term of twelve months. However
committee member can be re-elected.
If Credit Officer has satisfied that the classes have eligible members and each group has pledged to strictly adhere to ADILI
MICROFINANCE COMPANY LTD (AMFC)credit rules and procedures.
Credit officer can start clients’ registration process after class formation.
Each potential client will complete individual application form and pay registration fee.
Group leaders will receive individuals’ membership application forms and receive registration fee from each member and submit the
same to the class management.
Class management committee has to receive group application forms and individuals’ registration from group leaders. Complete
Class membership application with ADILI MICROFINANCE COMPANY LTD (AMFC)by getting all group officials to fill out and sign an
application form. Class leaders to submit registration fee direct to teller after confirmed balanced. The class has to arrange the day
of weekly meetings.
The Credit officer receives Class application supported by group membership application forms and get class registration approval
from the Manager. After approval the credit officer issues individual loan ledger book and an ID card.
Upon client registration with ADILI MICROFINANCE COMPANY LTD (AMFC) all client have to undergo 4 weeks training on loan products,
loan conditions and procedures. Once per month each class has to undergo training on entrepreneurship and development.
All group members has to pay minimum of Tshs. 1,500/= as a weekly savings guarantee fund together with the repayment for the
whole loan life cycle with ADILI MICROFINANCE COMPANY LTD (AMFC).
Weekly meetings are held for all class members for the purpose of making weekly loan repayment and savings guarantee fund
deposit.
Lamp sum payment of savings guarantee fund are acceptable for clients who have had their SGF reduced for any reason, or for
clients need to meet required SGF balances for loan requested.
✓ The class management committee will be elected from the executive committee by all members of the class.
✓ Responsible for determine and custodian of fines but minimum amount of the fine to be dictated by ADILI MICROFINANCE
COMPANY LTD (AMFC)
✓ Responsible for weekly class collection of loan repayment and savings guarantee fund.
✓ Maintain attendance register and verify group attendance.
✓ All fines to be collected immediately and if not, prior to customer’s next loan application being considered. The customer can
also be recommended for an expulsion if this behavior persists.
✓ Acknowledge weekly entries on individual members’ loan ledger book.
Loan Application (second week)
✓ The credit officer should emphasize that ADILI MICROFINANCE COMPANY LTD (AMFC)to start by approving small loans in order
the client to understand loan conditions and procedures; and also the clients to know about each other.
✓ All clients have to fill loan application and approval form and pay loan application fee direct to teller.
✓ Provide all clients with the local government official guarantee form.
✓ The groups have to visit each other at client business and access if it can repay the loan applied.
✓ The groups have to visit the clients’ residents to access the value of additional collaterals such as household items if it can
secure the loan applied.
✓ The groups have to visit local government official to obtain third party guarantee.
NB: For the second and other loans cycle the ADILI MICROFINANCE COMPANY LTD (AMFC)Credit Manager have also required
visiting the client prior to appraisal of the loan.
During the process of loan appraisal each client’s application is discussed one at a time while client in question stays outside waiting
for decision.
The class chairperson has to ask the group members how familiar are with each other and re-affirm their guarantee to the applicant
and the group members has to leave the class and stay outside waiting for decision. This provides the credit committee the
opportunity to freely discuss each client and their business, after each individual assessment one is given immediate feedback on
decision and reasons there on.
The class chairperson shall ask the group members visited the group being discussed to furnish the loan committee with the
following client information:
▪ Location of the business
▪ Type of business to be financed.
▪ Income of the business before receiving the loan.
▪ General expenses of business.
▪ Ability of client to repay the loan weekly.
▪ The expected result after the loan.
▪ Other source of income if any.
▪ Character of the borrower.
▪ Credit worthiness of the borrower.
▪ Attendance to class meetings (90%).
▪ Previous loan repayment records.
▪ The value of additional collateral (to be mentioned as pleaded in the local government leader’s form).
The minimum total number of the loan applaud committee presented must not be less than 17 members, with at least 3
representative from each group Member and the group of the loan applicant must all be physically present during loan appraisal.
It is very important that client clients understand the importance of the exercise and of being involved in the actual approval of the
loan to the members. Due emphasis should be made to further stress the significance of them being co-guarantors to the loans as
they are severally and individually liable for the repayment of the loan and SGF to ADILI MICROFINANCE COMPANY LTD (AMFC).
The chairperson has to ask the loan committee if they are agreeable to guarantee the applicant loan as requested. Once the loans
are approved by the class the chairperson has to sign the loan application form on behalf of the class loan committee and shall be
handed over to the credit officer.
The Credit Officer shall verify the loan application by ensuring compliance on the following:
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▪ There is full group of 5 members during appraisal.
▪ The client has paid SGF at least four weeks (for the first loan) and 25% of the loan amount
requested for subsequent loans.
▪ The client has paid all fines and the penalty monies.
▪ Loan amount falls within relevant loan cycle.
▪ Correct client identification data.
▪ Class attendance has been accepted.
The Credit Officer can verify the loan and handle it to the Branch Manager for approval. The credit officer can disapprove loan
application giving adequate reason(s) to class loan committee. The BM or CM will be responsible for all such decision taken.
Loan Disbursement
After loan approved the following should be done:-
i. The identity Card is issued to the client after having received two colored passport size picture. All cost to be borne by
the client.
ii. The credit officer must read the contents of the loan agreement and client have agree and sign, there after the class
chairperson/secretary have to sign on behalf of the class. The credit officer collects the loan contract to the BM for
signing attached with the following:
a)Individual loan application form
b) Group visit or credit officer visit report.
iii. The client has to pay 2% of the loan applied as loan administration fee drivel to the teller.
iv. The client has to pay 3% of the loan as insurance premium direct to teller.
v. The weekly disbursement report is prepared by the Operations Manager to the Branch accountant where he/she can
prepare a cheque in favor of a client.
vi. Each client has to sign the loan disbursement voucher and dispatch to acknowledge the receipt of the chaeque at the
class meetings.
Loan repayment
(i) ADILI MICROFINANCE COMPANY LTD (AMFC)loan repayment must be done at the clients’ centers or any designated
place.
(ii) The daily repayment report is prepared by the Operations Manager to the credit officer and teller before class hours.
(iii) All Group members must attend the repayment meeting. In case of partial payment, members of group must cover
the difference. All payment must be deposited to the Teller by the class management committee leaders.
(iv) The loan repayment meeting shall end only if all loan principle, loan interest and loan Guarantee Fund id fully paid
as per loan contract. Each individual client must sign the receipt valued to the money deposited and printed to the
clients before the end of the meeting.
(i) For the pre-payment loans and SGF, the client has to pay it separately from the contractual weekly repayments.
The client has to be accompanied by class management committee leader and deposit the same direct to the teller.
Loan follow – up
All loans MUST be paid as per the repayment schedules, late payment is not accepted.
A loan that has not been paid any times is called a delinquent loan, or a delinquent loan is the situation that occurs when loan
payments are past due. A delinquent loan is recognized when the client misses one installment or repayment as per the terms of the
contract.
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A delinquent loan is Contagious and spreads like bush fire. Delinquency can eat away the portfolio without any one realizing it, and
the suddenly explore out like a hidden beast. Failure to control loan delinquency is very dangerous to an institution that provides
credit to micro enterprise entrepreneurs and small holder farmers. The quicker that the delinquent is recognized the more the
possibility of recovering the past due loan amount.
The risk of delinquency and default therefore is controlled by front staff (Credit officers) while managing and monitoring their loan
portfolio. The organization on the other hand ensures timely report so as enable them to arrest the situation without delay. If a client
does not pay on time the following happens to the organization.
a. External – Natural calamities e.g. Draught, floods, fire, theft and burglary.
b. Internal
▪ Over/under funding, short term funds for long term and
▪ Misuse/diversion of funds to non income generating activities
▪ Misunderstanding in groups
▪ Inaccuracy or inadequate appraisal
▪ Delayed action on defaulters
▪ Poor orientation process from one loan officer to another
▪ Delayed loan processing
▪ Ineffective monitoring of clients activities
▪ Deliberate refusal to pay
▪ Fraud by loan officers
The most effective way to manage defaults it to prevent it. Loan follow – up is a responsibility of a credit officer which should
be done after every repayment meeting. The following are therefore some of the approaches/strategies that a credit officer
could use to prevent the occurrence of default and when it does occur, manage/minimize it as quickly as possible.
▪ Ensure that you select and screen the clients very well
▪ Proper group orientation and training on the lending requirement from onset.
▪ Conduct a thought appraisal of loans and provide appropriate loan sizes to all clients. Always base your loan decision the
current business cash flow not on the projections presented by the client
▪ Ensure quality service at all times. For instance, process loans within shortest time possible
▪ Proper loan sequencing
▪ Frequent visits (both planned and impromptu) to monitor client
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▪ Attend all group meetings- preferably weekly.
▪ Ensure that group maintain correct and up to date records at all times
▪ Both you and the group should take immediate action on any missed loan repayment
▪ All group must have competent, respectable and trustworthily leaders
All these measures enhance the co-guarantee mechanism which constitutes the main security for small loans.
(IV) Loan follow-up procedures
ADILI MICROFINANCE COMPANY LTD (AMFC) loans are followed immediately after they fall due. Client should perform the
repayment enforcement duties by visiting their member’s immediately. On the other hand loan follow up is the responsibility of
the credit officer, and in case clients have failed he/she will assist by doing the following;
The CO assist the group members in following the default and feedback on the following should be given to the branch manager
▪ If is the whole group defaults the CO should summon the group for discussion in the office (ADILI MICROFINANCE COMPANY
LTD (AMFC)) with the view of determining the problem areas and discuss on the probable solutions. Branch manager should
facilitate this process and ensure the group commits specified date of payment
▪ In the vent of failure to comply with the above agreement, the CO will send the group to the Local government leader for
further actions.
▪ When this stage does not give results the group will do recovery exercise by seizing collateral pledges after official
correspondence with local government leaders, it should be remembered here that all official channels to do the exercise
must be followed.
▪ The group will have to surrender the 25% savings guarantee fund in accordance with the loan agreement.
▪ If all the above sources fail, ADILI MICROFINANCE COMPANY LTD (AMFC)will have to take legal recourses to individual or
group as the case may be.
iii Voluntarily
The exit form to be filled and signed by class leader and the credit officer and then forwarded to the Branch manager for
authorization of the loan savings guarantee refund.
Upon approval a withdrawal vouchers to be completed and signed by the credit officer and the Manager. The exited client
(accompanied by class leader) will identify himself to the teller with his/her ADILI MICROFINANCE COMPANY LTD (AMFC)identity card
and withdrawal voucher after which the payment is effected. The client required to sign withdrawal voucher on the space provided
on the voucher over the counter to acknowledge the receipt of the SGF.
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The Identity card of the exited client is then retained by the teller and perforated accordingly and handed over to the Branch
Operations Manager thereafter.
In case of death the loan outstanding amount will be covered by loan Insurance cover their fore all SGF will be paid in favor of
his/her next of keen or as be directed by an Administrator to be appointed by count of low.
The client will be re- admitted by consent of the group and class members; and Branch managers’ authority. The level of the loan that
client can enjoy will be determined by ADILI MICROFINANCE COMPANY LTD (AMFC)and Guarantors but final decision will be on the hand
of the Branch manager.
Pricing Structure.
• The client has to pay a 25% interest p.a (flat rate) of the loan disbursed
• The clients have to pay loan application fee of Tshs 2% of the loan size during application direct to the teller.
• The client shall pay Penalty for 10% of the Installment due for late payment direct to the Teller.
Collateral
• Legal Mortgage over landed property.
• Chartless Mortgage over movable property.
• Group guarantee.
• Lien over Savings Guarantee Fund.
• Pledge items, household items, office furniture or an inventory (business goods).
• Sales receipt (stakabadhi ghalani).
• Fixed deposit receipt.
• Government Securities/bonds.
• Valuables shares certificates.
• Personal guarantee mainly from a friend or family member.
• Government leader’s guarantee.
• Employer’s guarantee.
Method of payment
Flexible.
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1 100,000 25% 25 Weeks
2 300,000 25% 50 Weeks
3 500,000 25% 50 Weeks
4 1,000,000 25% 50 Weeks
5 2,000,000 25% 50 Weeks
6 4,000,000 25% 75 Weeks
7 6,000,000 25% 100 Weeks
Loan process
• Group formation
The group is comprised of 4 clients involved in income generating activities operating at one business center and near to ADILI
MICROFINANCE COMPANY LTD (AMFC)branch. The group is selected by persons who enjoy mutual trust and confidence and have
graduated from group loan cycle. The close relatives i.e. parents, children and spouse are not required to be members of the group.
Each group shall select Chairman, Secretary/Treasury and will serve for maximum term of twelve months. However committee
member can be re-elected.
If Credit Officer has satisfied that a group has eligible members and each member has pledged to strictly adhere to ADILI
MICROFINANCE COMPANY LTD (AMFC)credit rules and procedures.
Loan Application
All clients have to fill loan application and approval form and pay loan application fee direct to teller.
Provide all clients with the local government official guarantee form.
The group has to visit each other at client business and access if it can repay the loan applied.
The groups have to visit the clients’ residents to access the value of additional collaterals such as household items if it can secure
the loan applied.
The group has to visit local government official to obtain third party guarantee.
During first week two members (first set) shall be visited.
On the second week the rest of the two members (second set) shall be visited.
ADILI MICROFINANCE COMPANY LTD (AMFC)Credit Manager has also required visiting the client prior to appraisal of the loan.
(ii) The group members will provide their guarantee by signing the borrower application form if they individually approve
of the member getting the loan.
(iii) The chairperson of the group shall present the loan request of each member to the loan committee for consideration.
(iv) During the process of loan appraisal each client’s application is discussed one at a time while client in question stays
outside waiting for decision.
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(v) The class chairperson has to ask the group members how familiar are with each other and re-affirm their guarantee
to the applicant. After each individual assessment one is given immediate feedback on decision and reasons there on.
(vi) The class chairperson shall ask the group members visited the member being discussed to furnish the loan committee
with the following client information:
• Location of the business.
• Type of business to be financed.
• Income of the business before receiving the loan.
• General expenses of business.
• Ability of client to repay the loan weekly.
• The expected result after the loan.
• Other source of income if any.
• Character of the borrower.
• Credit worthiness of the borrower.
• Previous loan repayment records.
• The value of additional collateral (to be mentioned as pleaded in the local government leader’s form).
(ii) The minimum total number of the loan applaud committee presented must not be less than 3 members.
(iii) It is very important that client clients understand the importance of the exercise and of being involved in the actual
approval of the loan to the members. Due emphasis should be made to further stress the significance of them being
co-guarantors to the loans as they are severally and individually liable for the repayment of the loan and SGF to ADILI
MICROFINANCE COMPANY LTD (AMFC).
(iv) The chairperson has to ask the group members if they are agreeable to guarantee the applicant loan as requested.
Once the loans are approved by the class the chairperson has to sign the loan application form on behalf of the class
loan committee and shall be handed over to the credit Manager.
(v) The Credit Manager shall verify the loan application by ensuring compliance on the following:
Loan Disbursement
After loan approved the following should be done:-
The credit manager must read the contents of the loan agreement and client have agree and sign, there after the class
chairperson/secretary have to sign on behalf of the group. The credit officer collects the loan contract to the BM for signing
attached with the following:
Loan repayment
• ADILI MICROFINANCE COMPANY LTD (AMFC) loan repayment must be done at the clients’ centers or any designated place.
• The daily repayment report is prepared by the Operations Manager to the credit officer and teller on due date.
• All loan principle, loan interest and loan Guarantee Fund is fully paid as per loan contract.
• Each individual client must sign the receipt valued to the money deposited and printed to the clients before leaving the
counter by him/her self or an agent.
Loan follow – up
All loans MUST be paid as per the repayment schedules, late payment is not accepted.
Pricing structure
▪ The client has to pay a 25% interest p.a (flat rate) of the loan disbursed.
▪ The clients have to pay loan application fee of Tshs 2% of the loan size during disbursement direct to the teller.
▪ The client shall pay Penalty for 10% of the Installment due for late payment direct to the Teller.
All Costs including legal mortgage, Land rents, Search fee, Valuation fee, Legal fee and Auction fee will be born by a client.
Method of payment
• Flexible
Terms of payments
• Repayment direct to Teller individually or by representatives
• Quarterly group meeting at ADILI MICROFINANCE COMPANY LTD (AMFC) Branch or ADILI MICROFINANCE COMPANY LTD (AMFC)
centre.
• Post payment of the loan also accepted.
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NB: It is better to be understood that, “ADILI MICROFINANCE COMPANY LTD (AMFC) is neither a real estate agent nor a court
Broker”. Therefore it is the duty and obligation of the employee to take all. Precautions and measures before issuing the loan to the
client. Hower the Collateral will be the last resort to recover the client’s loan if fall deliguent.
Pricing structure.
▪ The client has to pay registration fee of Tshs. 20,000/=
▪ The client has to pay a 10% interest p.m (flat rate) of the loan disbursed.
▪ The clients have to pay loan application fee of Tshs 2% of the loan size during application direct to the teller.
▪ The client shall pay Penalty for 10% of the Installment due for late payment direct to the Teller.
▪ Fee and Auction fee will be born by a client.
Method of payment
• Flexible
Terms of payments
. Repayment direct to Teller individually or by representatives.
Collateral
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