6 minute read
SENIOR MANAGEMENT TEAM
Emmanuel KARURANGA Director, Finance Department
Advertisement
Jean Désirè USABYIMANA Director, Credit Department Joseph MUSERUKA Managing Director
Joseph MUGIRE Director, Human Resources & Administration Department
Aimable DUSABIRANE Director, Operations Department
Robert S. ASIIMWE Director, Business Develpment Services Department
Patrick KAMBALI Director, IT Infrastructure Department Alain RUTEMBESA Director, Management Information Sytems Department
Willy N. NDAYISABA Director, Internal Audit Department
Jean Claude RUGEMA Director, Legal and Compliance Department Francois M. KAVATIRI Planning, Monitoring & Evaluation Specialist
Financial Products
SAVINGS PRODUCTS CREDIT PRODUCTS
Umwalimu Sacco offers an increasing number of attractive savings products, including: - Permanent savings - Voluntary savings - Free Savings account
- Term deposits
Permanent savings
This product is the principal source of funding from members. It is deducted from monthly salary at the cost of 5% or subject to a minimum of Rwf 2,000. It is used also as source of guaranty of overdraft loan and will not be withdrawn until the owner leaves the SACCO.
Free Savings Account
Current account is the account where the owner can withdraw and deposit freely. The account has to maintain a minimum balance of Rwf 5,000.
Term deposits
Umwalimu SACCO offers an increasing number of attractive credit products to its clients, including: - Consumer Loan - Mortgage loan - Project loan - Equipment loan - Education loan
- Overdraft and Treasury loan , etc.
Education loan
Education loan is purposely for school fees, school materials, dissertation and graduation costs and laptop for the teachers.
Equipment loans
Equipment loan is the product that is designed for responding to needs related to home equipment, transport facilities and marriage and maternity needs. Home equipment is mainly television, chairs, bed, cupboard and other household items. Transport loans are for vehicle and motorcycle purchases. Marriage loan is purposely for financing dowry, marriage ceremony, maternity expenses and purchase of clothes.
Term deposit is also voluntary savings designed and promoted to encourage members with high liquidity that will not be spent within three months and deposit it with the Umwalimu SACCO. Amount saved will accrue interest at 6% per year. This nature of savings is not made for financing any specific need in the future.
Overdraft and Treasury Loan
Overdraft is the product designed for financing urgent needs and that repayment of the loan will be paid from monthly salary and period payment does not exceed one 10 Profile Magazine Issue 01 / 2015
month. The borrower is free to allocate the amount granted to any activity.
Salary Advance
Salary advance also is like overdraft product but the difference is that a borrower is required to fulfill some conditions and present physical collateral before being granted the loan above Rw 2 million and the loan payment period does not exceed 24 months. The loan repayment period varies between two and 24 months.
Agriculture loan
Agriculture loan is the product designed for financing farming activities such as agriculture inputs (seeds, fertilizer, and pesticide and harvest facilities), Agricultural equipment, land purchase and rent, cattle and small animals are all financed under this product. Agriculture loan is promoted in order to contribute to food security and generating additional income to members. This product have specific facilities such as seasonal repayment facility, grace period and allowing official spouse to use the account, insurance facility and flexible facility to enable members to reach easily to the loan. The loan request related to this product, are key priorities in liquidity management.
Project Loan
Business loans are products for income generation projects excluding transformation. The size of loan amount depends on the appreciation of cash flow and return on investment not on salary. This is because it allows members with innovative projects with added value and high impact to access capital required for operationalizing their ideas and helps them to have additional income. Business loan is includes projects related to retail, transport, agribusiness, building commercial house, trade of services such as restaurant, hotels, school loan etc.
Mortgage Loan
This product is designed to allow members to have their own residential homes. Because it requires the big amount for project implementation the borrower is required to save a portion equivalent to 10% of the amount needed.
LENDING METHODOLOGY, LOAN SECURITY AND PRINCIPAL LOAN CHARACTERISTICS
This section describes how different loan products are offered, their characteristics, details of loans size, repayment frequency or repayment period, grace period, loan type , interest rate, commission fees, files and terms and how these loans are secured in order to minimize loss and get back the amount due when the borrower defaults.
Loan security
The security of the loan depends on the type of loan given and level of risk related. In the case of Umwalimu SACCO and the context of legal framework of collateral regulation and the financial capacity of borrowers and the size of the loan given, the following seven loan security are used: Net monthly salary of borrower, terminal benefits, compulsory savings, insurance, credit solidarity fund, co-guarantors, equipment and standing orders and collateral.
Collateral security
This option is used to secure a big amount of loan and repayment period is over one year that cannot be covered by salary and compulsory savings. This collateral gives the institution the right to seize or foreclose it when the loan is defaulted or written off. Collateral security could be physical assets such as: mortgage, land and livestock.
Co-guarantors
This is used in the case of small loan amount given the fact that it is not fully repaid as defined in terms of contract. It obliges the borrower to have a guarantor who must be subjected to the same loan term and conditions and the institution should establish a clear procedure to access the co-signers’ resources in case the client defaults. Co-signers’ resources should be savings, salary, etc.
Credit solidarity fund
Every loan whose repayment is over one month and less or equal to 24 months and not exceeding Rwf 2 million, is insured by Umwalimu SACOO at 2% rate of total amount disbursed as credit solidarity fund.
Salary, terminal benefits and compulsory savings:
These are used for the loan payable within one month. In general is exclusively used for overdraft loan. In the case of borrower default, Umwalimu SACCO has the right to foreclose the terminal benefits and compulsory savings.
Non-Financial Services
Umwalimu SACCO also offers non-financial services which include funeral mutual funds, credit solidarity funds, business training and advisory services to help members to develop and manage profitable business projects.
Funeral mutual fund
This is a financial facility created in order to support any active member who loses a direct family member. When a family member is dead , Umwalimu SACCO disburses Rwf 300,000 for spouse and Rwf200,000 for a child to the family of the deceased member. This money is used to finance burial ceremony. To be eligible to this fund, a member makes monthly voluntary contribution of Rwf 300.
Umwalimu SACCO provides training in entrepreneurship and business elaboration as well as financial literacy to members with the aim of increasing their capacity on how to create innovative projects with high investment return and how to work with small money to become reach.
