Savings
” Savings can help the accumulate assets which could be used for business and household purposes while also earning interest on savings. “
Our Saving Products
For microfinance institutions, collecting savings from customers represents a fundamental instrument in achieving sustainability. Saving mobilization allows clients to obtain the resources to finance the growth of the loan portfolio and become independent from subsidies or external financing.
In this part, there are compulsory savings and voluntary savings. Compulsory saving products consist of mechanism of forced saving, which imply that a certain percentage of the supplied loan is held back and placed in a fund that acts as a part guarantee. However, there are also category of persons who normally prefer voluntary saving products. These are volunteer methods of saving collection that allow the saver to deposit and withdraw, with varying frequency and expiry dates, according to the products liquidity. There are other saving mechanisms which will be attractive the general public both in business or as individuals which may afford them the opportunity to get financial assistance in time of critical need and this shall be also explored as a means of mobilising stable deposits.
Compulsory Saving
The minimum savings that condition the borrower’s access to loans and can be seen as a substitute for collateral imposing a positive inducement for repayment. MFI regulation typically does not allow withdrawal and use of those savings until the loan is repaid.
Interest Rate is 1.25 % per month ( 14% per Annually)