UNS-SACCO UGANDA 15A Clement Hill Road | +256 312110414 | [email protected] | CREDIDT COMMITTEE &...

UNS-SACCO UGANDA

15A Clement Hill Road | +256 312110414 | [email protected] | www.uns-sacco.org

CREDIDT COMMITTEE & LOAN APPLICATION GUIDELINES

Presentation by Credit Committee

UNS-SACCO UGANDA


CRED

IT C

OM

MIT

TEE

FUN

CTIO

N Reviews applications for loans and makes decisions upon such applications within the authority delegated to the Credit Committee. All loan decisions must be based on UNS-SACCO’s established loan/credit policies.

Review loan & collection policies along with performance. Recommend changes to the policies to improve loan underwriting & collection efforts.

Evaluate lending performance annually and compare it to past periods by reviewing a breakdown of the number and amount of loans outstanding by purpose and collateral, total number and amount of loans approved and declined, the total number of borrowers, the ratio of borrowers to members, the average loan size, the delinquent loan to total loan ratio, and the net charge off/average loan ratio.

UNS-SACCO UGANDA


LOAN

PRO

CESS

The CC meets every Thursday & consists of 3 members – 1 of the 3 is a CC Chairman. The CC evaluates the borrower’s ability to repay the loan and makes a loan decision. The repay period is maximum 18 months, depending on Loan product. The requirements for a successful application via the UNS-SACCO management to the Credit Committee must fulfill the following requirements:

A successful application is one meeting the above requirements and the loan is disbursed to the applicant the following day.

UNS-SACCO UGANDALO

AN P

ROD

UCT

S D E V E L O P M E N T L O A N• Maximum Loan amount UGX 80,000,000 • Maximum Loan repayment period 60 months • Interest 23% p.a. Changes in interest rates will not affect existing loans • Early loan pay off does not attract penalty fee • Minimum of 4 months UNS-SACCO Membership • Loan Application fee UGX 30,000 • Title Search UGX 125,000 • Shares 10% of loan amount • Two credible guarantors • Signed security Deposit Form • Insurance premium 1% of loan amount• Loan Commission 2% of loan amount• Personal Credit Reference Bureau Card • Valuation report by UNS-SACCO approved valuer • Caveat / Legal fees UGX 655,000 • Land title search

UNS-SACCO UGANDALO

AN P

ROD

UCT

S O R D I N A R Y L O A N• Maximum loan amount UGX 30,000,000 • Maximum loan period 24 months • Interest is 13% p.a. below UGX 10,000,000 & 16% p.a. above UGX 10,000,000 • Standing membership of 4 months • Loan Application UGX 20,000 • Loan Commission 2% • Insurance premium 1% • Employee ID• Current pay slip • Contract Letter • Two Guarantors • 4 times accumulated savings of the loan amount • 10% shares of the loan amount

UNS-SACCO UGANDARE

QU

IRED

SAV

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S ST

RUCT

URE UGX Loan amount and current required minimum monthly savings

Loan amount Monthly savings

500,000 2,000,000‐ 100,000

2,001,000 4,000,000‐ 150,000

4,001,000 5,000,000‐ 200,000

5,001,000 8,000,000‐ 250,000

8,001,000 10,000,000‐ 300,000

10,001,000 12,000,000‐ 350,000

12,001,000 14,000,000‐ 400,000

14,001,000 - 16,000,000 450,000

16,000,001 – 80,000,000 500,000

UNS-SACCO UGANDA


GU

ARAN

TORS

HIP GUARANTOR SHIP HAS LEGAL, ECONOMIC, REPUTATION AND SOCIAL

EFFECTS

The guarantors’ liability actThe legal position is clear that: liability of the guarantor and principal debtor are co-extensive and not in alternative. The guarantor is jointly and severely liable with the principal borrower for the principal amount, interest, penalties and other loan recovery and legal costs incurred by the lender.

A guarantor is needed in order to reduce the risk of the loan default in a situation where a principal borrower cannot stand in for her/himself.

UNS-SACCO UGANDA


GU

ARAN

TORS

HIP What should you do if a person requests you for loan guarantor ship?

• You must know the loan amount the person has applied for, the loan period, interest rate and installment per month

• You must know other securities the client has presented for the loan• You must know the capacity of the client to pay back• You must know if the client has other loan obligations and if s/he is

paying well• You must know the contract status of the client and any other benefits

the client is possessing• It’s advised not to guarantee many people at the same time• You can contact UNS-SACCO in case you are not sure of the information

given by the loan applicant.

Read more about guarantor-ship at www.uns-sacco.org

UNS-SACCO UGANDA


LOAN

PRO

DU

CTS Loan

productInterest

rate p.a. Maximum

UGX amountMax.

period Ordinary 13.5 % 10,000,000 18 Months

Ordinary 16 % Above 10,000,000 18 Months

Bank Refinance 16 % 30,000,000 24 Months

Emergency 24 % 2,000,000 4 Months

Asset Financing 16 % 50,000,000 36 Months

Education 13.5 % 4,000,000 12 Months

Express 36 % 4,000,000 6 Months

UNS-SACCO UGANDA


SAV

ING

S PR

OD

UCT

S

Savings products Interest p.a.Free savings 3 %

Family Golden Savings 3 %Family Silver Savings 3 %

Family Watoto Savings 3 %

UNS-SACCO UGANDA


BEC

OM

E A

MEM

BER MEMBERSHIP IS OPEN TO UN STAFF AND THEIR SPOUSES/CHILDREN

• UN employee with temporary, fixed or continuous contract• Registration fee UGX 10,000• Purchase at least 10 shares, each at UGX 10,000• Two recent passport size photos

Non UN employees

SpousePurchase at least 100 sharesInitial savings deposit UGX 500,000 Proof of relationship

ChildrenPurchase at least 30 sharesInitial savings deposit UGX 200,000Proof of relationship

UNS-SACCO UGANDA


COM

MU

NIC

ATIO

NS

www.uns-sacco.org and [email protected] are our main communications channels especially for members outside Kampala but we are happy to serve you at 15A Clement Hill road or via 31 2110414

THANK YOU FOR YOUR ATTENTIONPresentation downloadable from www.uns-sacco.org

http://www.uns-sacco.org/

mailto:[email protected]

UNS-SACCO UGANDA 15A Clement Hill Road | +256 312110414 | [email protected] | CREDIDT COMMITTEE &...

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