In-Service Loan for Teachers

Institutional Objectives

Make a profit, serve the needs of especially teachers in partner schools helping them acquire higher education certifications.

Targe Client

Any Teacher in full employment and receiving a regular income in a Partner School.

Loan Purpose

To finance:
• University Fees
• Scholastic Materials.
• Children's Fees.

Loan amount & Tenor

Minimum: UGX 100,000
Maximum: UGX 10,000,000 above that is negotiable

Loan Tenor is 3 - 36 months

Repayment structure

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

• Monthly installments
• Lump-sum payment allowable
• No grace period.

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

Other requirements

• Employer must be vetted by SML and sign an MoU or show proof of regular payment using ones NSSF Account;
• The total loan repayment amount should not exceed 30% of employee’s gross income;
• Be a member of the Investment Club at the School.

Physical evidence process

• Loan application , letter of appointment , NSSF Statement;
• 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;
• Credit Reference Report
• Field visits to confirm existence of the project.
• For Partner Schools the following requirements will be taken in to consideration:

- o Signed MoU between School and SML;
- o Recommendation from School Director stating contract start and end date, if fixed contract;
- o Consent by both Employee and Employer to make deduction at source;
- o Be a member of the Staff Investment Club;
- o Recommendation from the Investment Club Executive in support of your loan application;
- o Consent from the Club that failure to pay outstanding dues will be the responsibility of the Investment Club;
- o Proof of personal collaterals pledged to the Club.


• SML Staff and Partner Company Staff will access this facility but will have certain requirements as waived or discounted by virtue of being Employees in any one of these companies.