Interest Based Loans
Interest-based loans allow members to borrow funds from the group's shared funds at a customizable interest rate. These loans are secured by guarantors and subject to a formal approval process.
Loan Request Process
Initiate a New Loan
Select Group Member: To initiate a loan, the council member must select the group member who will make the loan. In this case, the selected member is "Chantal Irankunda ”.
Start the Loan: Once the member is selected, the next step is to click on the "Start a new loan ” option to proceed with the loan creation.
Select the Loan Type:. Next, the type of loan to be granted must be selected. In this case, the "Interest-Based Loan option is selected.
Steps to Complete the Loan Process
1. Loan Details
In this section, council members must enter borrower information:
Total Loan Amount: The amount of money to be borrowed.
Repayment Date: The date by which the loan must be repaid.
Interest Rate: The agreed-upon interest rate charged on the loan.
Activity linked to the loan: The intended use of the loan (e.g., Agriculture, Education, Technology, Small Business, Construction).
Click Next to proceed.
2. Add Loan Guarantors
You must select three guarantors:
Group Member Guarantors: If the guarantors are group members, select them from the provided list.
External Guarantors: If a guarantor is not a group member, they must be registered as an "External Guarantor." Click "Add External Guarantor."
Enter the following information for each external guarantor:
Guarantor Name
Relationship with the Applicant (e.g., sibling, parent, friend)
Click "Add Guarantor" to save the information.
Repeat this step for each external guarantor. Once all guarantors are added, click "Next."
3. Review and Validate the Loan
At this stage, you can review the loan details:
Name of the group member requesting the loan.
Loan Amount.
Due Date.
Interest Rate.
The applicant must validate their request by clicking Validate Loan Application
The borrower then confirms the loan by entering their PIN/NIP.
After successfully validating their identity (e.g., "Gaston ndayishimiye"), guarantors must also validate their identity. This step is not required for external guarantors.
As soon as guarantors verify their identity using their PIN, they'll instantly see the borrower's name and their own as guarantor.
4. Finalizing the Loan
Once all details and guarantors are validated, click Issue Loan to finalize the loan.
Wait for the confirmation message indicating that the loan has been successfully completed.
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