PATHWAY 06
Loans & Credit
After three months of saving, borrow up to three times your savings at 1.5% monthly on a reducing balance.
Who qualifies
A member qualifies for an ordinary loan when all three hold true.
- You have saved consistently for a minimum of three months.
- You do not currently hold a running loan.
- If you are guaranteeing other loans, you can only borrow the amount exceeding the total you have guaranteed.
Loan amounts
Minimum loanUGX 500,000
Maximum loan3× your savings, up to UGX 150,000,000
Hard capNo loan may exceed 10% of HMC net total assets
Interest and fees
Interest rate1.5% per month (18% per annum)
Interest calculationReducing balance: interest on the remaining principal
Processing fee4% of the loan, capped at UGX 100,000, non-refundable
Insurance fee1% of the loan, non-refundable
Monitoring feesZero
Administration feesZero
Loan terms
Loan period1 to 36 months
Month definition30 days from the disbursement date
Grace periodNone. The first installment falls due 30 days after disbursement
Repayment modeMonthly installments per the loan schedule
Turnaround time5 working days after submitting all documents
Security and guarantors
Collateral
Your savings held in HMC, plus a minimum of two guarantors.
Who can guarantee you
A guarantor must be an active saver in HMC, must not hold a running loan, and must not have guaranteed more than two other loans, unless their savings exceed every loan they have guaranteed. The combined savings of the applicant and guarantors must cover the loan plus interest for the entire duration.
Documents to submit
- Loan application form
- Loan agreement
- Loan guarantee forms
- National IDs for the borrower and all guarantors
- A 3-month bank statement showing cash flows
Arise. Build. Own. Grow.
Join the structure, save consistently, buy shares, and participate in the opportunities that create long-term impact.