Finance
Loan from one individual to another
| Question | Reply |
|---|---|
a) Is it common? | Yes |
b) What are the reasons for lending money? | Lack of financial means for: family problem, sickness case, schooling of children, field work, death, etc. |
c) How do they make people pay back? | Reimbursement in kind, Reminder and clear definition of repayment dates, pledge, give due date, reminders |
d) For how long do people lend money (in months)? | depending on the amount 2 to 12 months |
e) Amount usually lent (fork) | 10,000 to 100,000 |
f) What is the interest rate (%)? | 25 to 50% and sometimes 100% |
Source: Field Survey
Loan from a microfinance institution to producers
| Question | Reply |
|---|---|
a) Is it common? | Yes |
b) Describe how it works? | opening of account, to be member, to make at least 2 to 3 months after opening of the account, to make a request, to have a little money on the opened account, to have 2 witnesses, to accept the requirements of the cash register |
c) How do they make people pay back? | regular reminder of deadlines |
d) For how long did they usually lend money (in months)? | 6 months and more |
e) Amount usually lent (fork) | 100,000 to 4 million |
f) What is the interest rate (%)? | varies from one institution to another 13% in some and 19% in others |
Source : Field Survey
Loan from banks to producers
| Question | Reply |
|---|---|
a) Is it common? | no |
b) Describe how it works? | |
c) How do they make people pay back? | |
d) For how long do they usually lend money (in months)? | |
e) Amount usually lent (fork) | |
f) What is the interest rate (%)? |
Other savings and credit systems (eg. tontines)
a) What other formal and informal savings and credit systems exist?
There are forms of tontine for assistance with situations (happy or unhappy), tontines at the end of the year, market tontines, etc.
b) How do the different systems work?
The system of tontines works by sponsorship or moral guarantee that is to say that initiating members sensitize and inform others for whom they become sponsors. Sponsors receive the share (tontine) of their godchildren whom they give to the head of the tontine. Sponsors undertake to continue the tontine of his godson in case he does not respect the deadlines for payment of the tontine.
Source : Field Survey