Group Loans

Grow together with trusted group financing.

DMF Group Loans support organized groups, community businesses, women groups, and small entrepreneurs through responsible lending, group guarantee, and practical repayment support.

Product Overview

Designed for clients who believe in collective growth.

Group Loans are designed for members who know and trust one another and are willing to guarantee each other’s loans. This model helps clients access financing while building discipline, accountability, and shared responsibility.

The Credit Manual describes group lending as a structured product requiring group formation, registration, pre-credit training, group leadership, and regular repayments. :contentReference[oaicite:0]{index=0}

Group loan clients working together
Key Product Details

Simple, structured, and community-based.

Group Loans combine client training, savings discipline, group guarantee, and structured repayment.

Group Size 10–30 Members
Loan Term 4–12 Months
Interest 3.5% Monthly Flat
Repayment Weekly / Monthly
Eligibility

Who can apply for a DMF Group Loan?

Member Requirements

  • Applicant should be 18 years and above.
  • Applicant should have an economic activity or business.
  • Members should know and trust each other.
  • Members should agree to guarantee each other.
  • Members should participate in pre-credit training.
  • Members should have known business and residence locations.

Group Requirements

  • Group should elect leaders including chairperson, treasurer, and secretary.
  • Group should have a constitution and clear rules.
  • Group should open a group bank account with signatories.
  • Group should maintain repayment discipline and savings records.
  • Group should attend required training and meetings.
  • Group should be formally registered where required.
Application Process

How the group loan process works.

DMF uses a guided process to help groups prepare, understand responsibilities, and apply with confidence.

01

Group Formation

Members organize, elect leaders, define rules, and prepare group records.

02

Registration & Account

The group completes registration and opens a bank account with approved signatories.

03

Pre-Credit Training

Members receive training on loan management, savings, repayment, and responsibilities.

04

Approval & Disbursement

Loan files are reviewed, approved by committee, and disbursed after documentation.

Terms & Charges

Important group loan terms.

These product terms are based on DMF’s Credit Manual and should be confirmed with a DMF advisor before application.

Item Indicative Term
Interest Rate 3.5% per month flat.
Loan Period 4–6 months for early cycles; later cycles may go up to 12 months depending on performance.
Collateral / Guarantee Group guarantee, pledged items, and loan collateral fund as applicable.
Loan Collateral Fund 10% refundable on completion of the loan.
Administration Fee 2% of loan amount paid upfront.
Insurance 1% for 4–6 months; 1.5% for longer periods.
Application Fee UGX 5,000 per group member.
Repayment Frequency Weekly, bi-monthly, bi-weekly, or monthly depending on agreed structure.
Product terms may be reviewed or updated by DMF. Clients should confirm final charges, requirements, and repayment schedules with a branch advisor before signing loan documents.

Ready to apply as a group?

Speak to a DMF advisor or start your application today.