Vision Fund Loan Requirements
VisionFund Zambia offers various loan products tailored to support low-income entrepreneurs, particularly in rural areas. While specific eligibility criteria may vary by loan type,-
Active Business Operations: Applicants should have an existing business or be engaged in income-generating activities.
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Group Lending Participation: Some loan products, such as those under the Solidarity Group lending methodology (Pamodzi), require applicants to form or join groups. These groups leverage social collateral, especially for clients lacking sufficient physical collateral or formal credit history.
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Repeat Client Status: Certain products, like the Njinga (Bicycle) loan, are available to repeat clients, whether they are part of Solidarity Groups or individual borrowers.
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Agricultural Engagement: Loans such as the Lima (Agriculture) and Horticultural Loans are designed for farmers involved in seasonal crop cultivation or horticulture, respectively. These loans can cover assets, inputs, or a combination of both.
Types of loans offered by Vision Fund
Individual loans
VisionFund Zambia offers individual loans under the Chitukuko lending methodology. These loans are designed to provide working capital to low-income entrepreneurs, enabling them to start or expand their businesses. The increased income from these ventures can help families cover essential expenses such as school fees, medical costs, and nutritious food.
Key Features:
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Loan Purpose: To finance income-generating activities, including small businesses and agricultural projects.
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Eligibility: Targeted at individuals with existing businesses or viable business plans.
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Loan Amounts and Terms: Specifics vary based on the client's needs and repayment capacity.
For detailed information on eligibility criteria and application procedures, it's advisable to contact VisionFund Zambia directly or visit one of their local branches.
Group loans
VisionFund Zambia offers group loans through two primary methodologies:
1. Solidarity Group Lending (Pamodzi):
This approach is designed for clients who lack sufficient physical collateral and formal credit history. It leverages social collateral, where group members mutually guarantee each other's loans. Key features include:
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Group Formation: Clients form groups, collectively responsible for loan repayment.
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Loan Purpose: Primarily to support income-generating activities among members.
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Eligibility: Suitable for individuals without substantial assets but with a stable business or income source.
This method fosters community support and accountability, ensuring higher repayment rates and financial discipline.
2. Savings Group Linkage Loans:
Aimed at mature savings groups seeking additional capital, this product offers:
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Group Eligibility: Targeted at groups beyond their second cycle and in at least their third year together, demonstrating good record-keeping and financial literacy.
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Loan Structure: The loan is provided to the entire group, with members guaranteeing each other.
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Financial Benefit: The interest rate of the VisionFund loan is lower than the group's service charge, allowing the group to profit and increase funds available for distribution.
This product enhances the group's lending capacity, benefiting all members and promoting financial inclusion.
Summary
To obtain a loan from vision fund the above requirements are critical in both group and individual loans. Both methodologies aim to empower communities by providing access to financial resources, fostering economic growth, and improving livelihoods.
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