Infrastructure Development Loan

Institutional Objectives

Make a profit, serve the needs of existing clients and attract new clients.

Targe Client

School Directors that own and run schools based on Bible Principles and teach the same in their curriculum

Loan Purpose

To finance:
• Construction/purchase/repair facilities
• Purchase Assets for the business like:

• Property or land purchase ,
• Motor Vehicles
• Machinery and other Fixed Assets
• Hardware and Software electronics,
• Science Lab Equipment

• Construction

• Build dormitory or classroom blocks, administration block or laboratories
• Painting or renovation
• Power or Water Installation

Loan amount & Tenor

Minimum: UGX 500,000
Maximum: UGX 20,000,000 above that is negotiable
Loan Tenor is up to 36 months

Repayment structure

Based on the repayment capacity and on the cash flow of the client:

• Monthly installments of Interest and termly repayment of Principal
• Regular /irregular installments ( Amount and frequency – depending on the customer cash flow cycle or with only interest paid during the grace period )
• Mainly no grace period. However , there can be an exemption as determined at the time of appraisal

Collateral

• Fixed /Non-movable assets :

- Land: Land Titles and Land Sales agreements must be verified by the appropriate authority.

• Movable assets :

- Chattels e.g. Motor vehicles, motor cycles, machines;
- Other business Assets like stock or personal home possessions<
- Any asset(s) purchased with the loan funds

• Cash collateral at 5%
• Collateral should cover at least 125 % of the loan amount
• A reputable guarantor, must be a Landlord with proof.

Other requirements

• Must have a stable and reliable income from school. Other business or employment;
• The total loan repayment amount should not exceed 50 % of business disposable income;
• Only legal businesses can be funded.
• Depending on amount requested SML may require valuation and audited accounts

Physical evidence process

• Loan application , receipts , photos of the school, offer letter;
• Customer fills out loan application form;
• Customer provides documents as per checklist;
• Officer assesses the customer regarding ability to pay.
• Customer must have a current (chequeing) account;
• Loan Repayments are only done through designated points as per the Loan Agreement;
• Customer must present Original ID and a recent passport photo;
• Field visits to confirm existence of the project.