Empowering agricultural cooperatives
We proudly lead the way in supporting visionary agricultural cooperatives. Our commitment is reflected in the specialized loan offerings we provide to empower agricultural cooperatives on their journey to prosperity.
Soko Micro-Business Loan
Soko Credit is a highly competitive product targeted at micro businesses – 70% women and 30% men. The product beneficiaries are market vendors, shop owners, and small business owners in the agricultural value chain. It comes with flexible payment terms aimed at business expansion.
Product Features
- Interest rate: 2.0% per month
- Mode of interest calculation: Flat
- Minimum loan amount: UGX 500,000
- Maximum loan amount: 3,000,000
- Minimum loan period: 4 months
- Maximum loan period: 12 Months
Product Benefits
Flexible payment methods
Group guarantorship
Competitive interest rates
- Evidence that the business has existed for at least 6 months e.g.; Rent receipts, tenancy agreement, and market dues receipts.
- Proof of payment of loan protection fund which is 10% of the loan value
- Completed loan application form
- Loan application form fee: UGX 20,000
- Loan processing fee: 2% of the loan amount
- Loan insurance: 1% of 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)
- A group of three members shall be created to guarantee each other
- Must have been an active member of the cooperative for at least 3 months
- Three guarantors who are active savers of the cooperative (Savings balance to be more than 10% of the loan guaranteed)
Note: A guarantor cannot guarantee more than 2 businesses for a loan from Fanaka Finance - 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 the Buganda Land Board’s ownership certificate. Note: Customary the land is not acceptable as loan collateral
- LC 1 introduction letter (Area of residence)
- Copy of National ID of borrower and guarantor (s)
- Proof of business ownership (Trading license, a recommendation from market leaders, or market dues receipts)
- Evidence of cash flow i.e. bank statement, mobile money, and other source of cash flow. (For the past 3 months)
- Individual TIN Number
- The borrower should have attended a financial literacy class by Fanaka Finance
- Signed loan application form
- Proof of business ownership
- Recent cooperative shares and savings statements for the last 6 months
- Copy of National ID for borrower and guarantor(s)
- Copy of Cooperative ID for borrower and guarantor (s)
- Signed loan guarantee agreement
- Signed loan agreement
- CRB report
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