GOVERNMENT EMPOWERMENT FACILITIES

The Micro Enterprise Development Programme is administered by the Ministry of Public Service, Labour and Social Welfare. Funds under the programme are disbursed through micro-financial institutions (MFIs) and other partner organizations (Pos).

These include:-

. Savings and credit co-operative societies and village banks;

. Registered private money lending companies; and

•  NGOs

These should satisfy the following:-

. Based in the communities and are servicing the rural poor, especially women.

. Should be servicing the urban or peri-urban poor;

. Should have a Board of Directors, high repayment rate (>90%), Management Information Systems (MIS) and key positions filled

Loan Conditions

15% per annum

2% security fee

Established MFIs qualify for a maximum first time loan of $10 million or lower, depending on their outstanding portfolio.

New institutions with a portfolio size of less than $3m qualify for a maximum

loanof$3m.

Repayment period is up to 3 years. Grace period is up to 6 months Repayments are done quarterly.

Application Requirements

A comprehensive business plan covering:

Background, mission and vision, target market, program description, operational sustainability, institutional structure and management, sources and uses of funds plus a 3 year cash flow projections.