Fostering technological growth for cooperatives
We are dedicated to fostering the future of cooperatives through technological empowerment. The product is designed to address the technological gaps in cooperatives, supporting their pursuit of digital capacity building hence bridging the technology divide.
Tech Credit (SME)
Lack of ICT infrastructure, low levels of digitalization and poor record keeping in cooperatives remain a hindrance to their efficiency and business growth. The evidence of the need to digitize was affirmed by the movement and social distancing restrictions occasioned by Covid19 Standard Operating Procedures.
Fanaka’s Tech Credit is the ultimate solution to bridge the gaps identified. The product finances Software, Hardware and ICT Infrastructure to improve digital record keeping, reporting, interactive social networks, access to digital markets and remote work. Tech credit is for cooperatives societies and member owned registered small businesses.
The business impact matrices ranking on a listing scale have rated the product as relevant and a potential impact driver. The product is operationally cost efficient with its main limitation being the heavy capital injection for financing. The product has the potential to attract administered loans and concessional grants.
Product Features
- Loan interest rate: 1.5% per month
- Mode of interest rate calculation: Reducing balance
- Minimum loan amount: UGX 2,000,000
- Maximum loan amount: UGX 20,000,000
- Minimum loan period: 6 months
- Maximum loan period: 18 months
Product Benefits
Attractive interest rate
Flexible payment plan
Faster way to access digital platforms
- Loan application fee: UGX 20,000
- Loan processing fee: 2% of the loan amount
- Stamp duty fee: 0.5% of the loan amount
- URSB Fees Paid (Chattels caveat, search fee & registering)
- Credit Reference Bureau Fees Paid (credit reports, NIN validation & SACCO Score)
- Proof of the payment of at least 10% – Initial Deposit (loan protection fund)
- Asset Insurance
- Certified certificate of registration
- Registered maximum liability for cooperatives
- Audited/recent management reports
- Board resolution to borrow (registered)
- Annual cash flow projections
- Evidence of cash flow i.e. bank statement, mobile money and other source of cashflow. (6 months)
- Duly signed cooperative guarantee form
- Business TIN Number
- Individual borrowers must have attended a financial literacy class by Fanaka Finance
- Signed loan application form
- Audited/Past 3-year management report
- Signed cooperative loan guarantee agreement
- Copy of National ID of borrower and guarantor (s)
- Copy of Cooperative ID of borrower and guarantor (s)
- Board resolution to borrow
- Maximum liability
- Certified certificate of registration
- Signed loan agreement
- CRB report
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