This is unsecured loans for petty traders who hitherto might be denied access to traditional banking credit due to their inability to keep proper records or to provide collateral.
These petty traders must form savings and credit associations to be able to access the facility. The facility has strict eligibility criteria.
- Group members should engage in non-farming income generating ventures. Eg. Trading or pretty traders.
- Sex: Members of the group could be both males and females though the former should be predominant
- Age: Members should be aged 18 years and above
- Group members should have been in business for at least 6 months
- Group members should not be relatives or members of one family
- Group members should all reside in one town
- Group members should be registered on the National Health Insurance Scheme
- Group members should abide by all regulations of “GuaDivo Loan Scheme”
- The group members should have operated a savings account for at least 3 months
- At least three executive members comprising the chairman, secretary and treasure should have been elected to steer the affairs of the group