Finance

Loan from one individual to another

Question	Reply
a) Is it common?	Yes
b) What are the reasons for lending money?	For the most part, the reasons are: health, field work family ceremonies, schooling of children
c) How do they make people pay back?	by consent of both parties, by agricultural services to the person concerned, reimbursement by exchange of agricultural products after harvesting
d) For how long do people lend money (in months)?	1 to 3 months
e) Amount usually lent (fork)	20,000 to 100,000 CFA francs
f) What is the interest rate (%)?	Generally 30%

Source: Producers

Question	Reply
a) Is it common?	Yes
b) Describe how it works?	Customers must have an account at CLCAM, they must be in a business sector, solicited the loan, so request is studied, and when it is favorable it is granted.
c) How do they make people pay back?	Regular follow-up to beneficiaries
d) For how long did they usually lend money (in months)?	The duration is according to what they want to produce;maximum 12 months.
e) Amount usually lent (fork)	200,000 to 500,000 CFA francs
f) What is the interest rate (%)?	19% declining year

Source: CLCAM (Credit Agricole Mutuel Local Fund) Bohicon, Zogbodomey Agency. CA: DONVIDE Thierry at 95 36 81 10

There is no bank in Zogbodomey.

The informal savings system is the tontine.

The tontine works as follows:

Either periodically (5, 8, 15 or 30 days) where the tontler collects the funds from the members of the previously selected group and gives it to a member;
either by a round of collection by a pre-established order;
either by affinities with the tontaine or by seniority in the group;
or by a number draw by the members of the group.

Source: Producers and tontories

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