Gatsby Small Enterprise Loan

This loan product is for clients who mainly need to increase their working capital. Their business are mostly sole proprietorship and do not employ any people. The starting capital is usually got from personal savings.
Product ID 370
Product Status Active
Provider Name Gatsby Microfinance Limited
Administrator Name Gatsby Microfinance Ltd.
Country Uganda
Currency UGX

Specifications Minimum Maximum
Loan Amount (EUR) 901 1600
Investor Interest (%) 5.00 14.00
Grace Period (month) 0 0
Payback Period (month) 6 12
Bidding Period (day) 1 10

Fee schedule Closing Fees (%) Interest Fees (%)
MyC4 2.00% 6.00%
Provider 0.00% 0.00%
Administrator 5.00% 16.00%

Insurance Information:
Insurance premium of 1% of the loan is charged on loans with repayment period of less or equal to 1 year whereas 1.5% is charged on loans with repayment period of beyond 1 year.This insurance covers; client death and catastrophes affecting the business

Risk Management Information:
Required interaction with the client prior loan decision:
The business promises are visited by the loan's officer, and an in depth appraisal is done. Loans officer has to find out the clients cash flows, credibility of the business, capacity to pay back, and also look at the collateral.

Assessment of client’s affordability of the loan:
Cash flows are looked at, daily sales and purchases from records are also checked. Although most clients in this category do not keep records. Loan should not exceed 50% of the business value

Assessment of client’s stability:
The client should have been in the same business for more than 1 year. Client should be in the same business and premises for over 1 year. An affidavit is sworn to secure all securities to the loan.

Assessment of client’s reliability/character:
Reference checks about clients in their neighborhood at home and work places have to be done. Reference with the local village councils, surprise visits are made to both home and work places to ascertain information by the clients.

Securities taken for this loan (collateral, co-signers, etc)*
Land titles, land purchase agreements,vehicles and household chattels are some of the securities required. Guarantors to the clients have to be working and above 18 years.Original documents are kept with GMFL up to when the loan is fully repaid.

Other incentives for timely repayment of loan:
Clients with a good repayment record will be recommended to access other attractive products

* Disclaimer: Investors shall have no recourse to the security held in respect of any loan to Borrowers, nor have any recourse against MYC4, Loan Administrators or Providers for any default by Borrowers in their payment and repayment obligations.