This loan product is designed to meet working capital needs for micro enterprises. The borrowers generally include economically active men and women who need funds for income generating activities in the MSME sector.

The loan is delivered through groups comprising 5-10 members. The group may be comprised of women only, or men and women in the same group. FinanceRite provides training at the beginning covering group management, business management, responsible borrowing, savings, among other topics.

Interest Rate: 6%

Loan Duration: 3 to 6 months

Requirements for Chimvano Group formation
The group must:

• Be self-forming
• Members must be from the same locality
• Members must know each other very well
• The group must be composed of 5-10 members
• There must be no close relatives in the group
• Members must be aged between 21 and 59 years.
• May be composed of women only, or men and women in the same group. Where the group draws men and women, men membership of the group must not exceed one-third of the total group membership.
• Committed to do business.

Savings requirement for group loans
Group members are required to save consistently. The savings are deposited in the group’s bank account held at a bank. The savings belong to the group and FinanceRite does not have any access to the savings.