Bridging the finance gap for agricultural growth
Our unwavering belief lies in empowering cooperatives to thrive in their cooperative ventures by offering specialized loan products that bridge the finance gap in acquiring crucial farm inputs, chemicals, and machinery.
Kilimo Micro Business Loan
This credit facility is for microbusinesses owned by members of cooperatives engaged in agro processing, agro-inputs and produce trade. The product does NOT finance land leasing or buying.
Product Features
- Loan interest: 2.33% per month
- Minimum loan amount: UGX 500,000
- Maximum loan amount: UGX 5,000,000 for new borrowers and up to UGX 7,000,000 for refinancing
- Loan calculation method: Flat
- Minimum loan period: 4 months
- Maximum loan period: 12 months
Product Benefits
The fast and easiest way to access funds
Informal loan security accepted
Bringing hope to low-income earners and unbanked population
Quick turnaround time
- Active membership of a cooperative for at least 3 months
- The borrower’s business must have existed for at least 6 months
- Initial deposit for loan protection fund which is 10% of the total loan amount)
- Loan application fee: UGX 20,000
- Loan processing fee: 2% of the loan amount
- Stamp duty fee: 0.5% of the loan amount
- Loan insurance: 1% of the loan amount
- URSB Fees Paid (Chattels caveat, search fee & registering)
- Credit Reference Bureau Fees Paid (credit reports, NIN validation & SACCO Score)
- Loan collateral (land title, land agreement, motor vehicle, motorcycle, business assets)
- Detailed inquiry of the land agreement especially in Teso, Lango, and West Nile. Kibanja/Land on Kabaka’s land should have proof of paying busulu (Kibanja tenancy fees) or certificate of ownership from Buganda land Board. Note: Customary land is not acceptable as collateral
- LC 1 introduction letter
- Proof of business ownership (trading license, market dues receipts or recommendation from the Local Council)
- At least two guarantors who are active members and regular savers with the cooperative (Saving balance must be more than 10% of the loan guaranteed) Note: A guarantor cannot guarantee more than 2 businesses for a loan from Fanaka Finance
- Evidence of cash flow i.e. bank statement, mobile money, and other source of cash flow. (3 months)
- Individual TIN Number
- Signed loan application form
- Maximum liability
- Copy of National ID for borrower and guarantor(s)
- Copy of Cooperative ID for borrower and guarantor(s)
- Certified certificate of registration
- Signed loan agreement
- CRB report
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