Destiny Microfinance Limited

  • +256-393236249 +256-782 34 1345
  • info@dmf.co.ug
  • 9 Miles Mityana Road Bulaga Trading Centre ─ Wakiso District
More Info

Eco Stove Loan Product

Purpose: The purpose of the loan is to improve on the client’s access to cheaper, affordable and
environmentally friendly Cooking Eco Stove.

  • Activities Funded; the activities to be funded under this Product may include but not limited to;
  • Hire Purchase
  • Cash Purchase

Terms of the product: The Eco Stove loan product shall have a minimum term of 1 month and not exceeding 6 months.

  • Payment mode/frequency: Destiny will strive to agree with the borrower on the mode of payment
    that is regular and suitable for the client. Grace periods shall be discouraged for these loans unless
    approval is obtained from the Credit manager.
  •  Amounts: Minimum and maximum amounts – Minimum loan amount is Shs.400,000
    Maximum loan amount is based on performance and ability to pay but not exceeding
    Shs.3,000,000.
  • Security requirements: Loans shall be secured with a combination of securities including
    the product its self.
  • Eligibility Requirements: The applicant must fulfill the following requirements to qualify for the

Eco stove Product loan;

  • The client must have a regular business or Salary to support the repayment of the loan.
  • The Client must reside within the branch's operational area.
  • In case of liquidity shortages or other operational capacity constraints, preference shall be given to
    those clients who have had good credit history for three loan cycles or more;
    o The business to support the Project to be financed must have a regular cash flow.
    The following charges shall apply to this Product.
    i. Application Fees of 20,000/=
    ii. Interest: 4% per month (flat)

iii. Eco Stove for cash payment.
1. Single Burner Eco Stove 500,000/=
2. Double Burner Eco Stove 1,000,000/=
3. Triple Burner Eco Stove 1,500,000/=
4. Square Triple Burner Eco Stove 2,900,000/=
5. Eco Puller 2,600,000/=
6. Single Combi Oven 1,650,000
7. Double Combi Oven 2,650,000/=
8. Double Burner without Oven 3,150,000/=

iv. Mode of principle and interest payment: Monthly or Weekly equal installments.

Housing Loan Product

Purpose: The loan is to be used to make improvements on the client’s building that serves as the principal
residence of the client and or their immediate family, or member, or for a building that is used for business
and rentals
Activities Funded; the activities to be funded under this Product may include but not limited to;

  • Roofing
  • Finishing
  • Minor modification/ renovations to the property

Loan Term: Housing loan product shall have a minimum term of 1 month and not exceeding 24
months.
Payment mode/frequency: Destiny will strive to agree with the borrower on the mode of payment that is
regular and suitable for the client. Grace periods shall be discouraged for these loans unless approval is
obtained from the Credit manager.
Loan Amounts: Minimum and maximum amounts – Minimum loan amount is Shs. 300,000 Maximum loan
amount is based on performance and ability to pay but not exceeding Shs.3,000,000.
Security requirements: Loans shall be secured with a combination of securities. The securities shall cover
at least 150% of the loan amount. One or a combination of the following shall be acceptable as security;

  • Land Sales Agreement or Land titles.
  • House Hold and Business Chattels.
  • Motor vehicle /Cycle Log books  and etc.

Water and Sanitation Loan Product:

Purpose: The purpose of the loan is to improve on the client’s access to clean and safe water, and
sanitation on addition to client’s retention by offering a variety of products.

  • Activities Funded; the activities to be funded under this Product may include but not limited to;
  • Water Connection
  • Water Tank Purchase
  • Putting Ridges on the House
  • Underground Tank Construction
  • Toilet/ latrine Improvement
  • Toilet Construction
  • Loan Term: Water and sanitation loan product shall have a minimum term of 1 month and not

exceeding 24 months.

Payment mode/frequency: Destiny will strive to agree with the borrower on the mode of payment
that is regular and suitable for the client. Grace periods shall be discouraged for these loans unless
approval is obtained from the Credit manager.

  • Loan Amounts: Minimum and maximum amounts – Minimum loan amount is Shs. 300,000
    Maximum loan amount is based on performance and ability to pay but not exceeding
    Shs.3,000,000.
  • Security requirements: Loans shall be secured with a combination of securities. The securities
    shall cover at least 150% of the loan amount. One or a combination of the following shall be
    acceptable as security;
  • Land Sales Agreement or Land titles.
  • House Hold and Business Chattels.
  • Motor vehicle /Cycle Log books and etc.

Quick Loan Product:

Purpose: The purpose of this loan is to provide quick finance to Business entrepreneurs for any
productive purpose. This includes the provision of additional finance to a borrower’s urgent need at
that moment.

  • Loan Amounts: Minimum and maximum amounts – Minimum loan amount is Shs: 300,000,
    Maximum loan amount is shs 3,000,000.
  • Maturity: The maturity of a borrower’s first Micro Business Loan shall not exceed 3 months.
  • Payment mode/frequency: Destiny will agree with the borrower on the mode of payment that is
    suiting. No Grace periods shall apply to this type of loan. The borrower may pay in installments or
    may pay a whole sum amount as deemed fit.
  • Security requirements: Loans shall be secured with a combination of securities. The securities

shall cover at least 150% of the loan amount. One or a combination of the following shall be
acceptable as security;

  • Immovable Securities e.g. Land or buildings;
  • Moveable Securities e.g. Vehicles, chattels like household items, or stocks of goods;
  • Guarantors e.g. guarantee may be by a spouse or any person of Creditability who must
    append their signature on the application form, with a affixed passport photo and. Valid
    National Identification.
  • Land titles securing Micro Business Loans will not require the registration of a mortgage
    prior to disbursement. The land titles will be taken as security, Verification of land title
    MUST be done by legal department before loan approval and disbursement.
  • Eligibility Requirements: The applicant must fulfill the following requirements to qualify for a
    micro or small business loan; to have a minimum of 6 months experience in the business
    to be financed as an owner and to have expertise in the business to be financed.
  • To have established business within 60 km radius from branch’s operational office.
  • To reside within the branch’s operational area
  • In case of liquidity shortages or other operational capacity constraints, preference shall be
    given to those clients who have had good credit history for three loan cycles or more;
  • The business to be financed must have a regular cash flow; exceptions can only be made
    for schools.

Business Loan Product:

Purpose: The purpose of our business loan is to provide finance to Business entrepreneurs for
any productive purpose. This includes the provision of additional finance to a borrower’s current
assets, and acquisition of fixed assets or any other investment.

  • Maturity: The maturity of a borrower’s first Micro Business Loan shall not exceed 4months,
    whereas subsequent loans can have a maturity of up to 24 months.
  • Payment mode/frequency: Destiny will strive to agree with the borrower a mode of payment that
    is regular. Grace periods shall be discouraged for these loans and approval is got from the Credit
    manager.
  • Loan Amounts: Minimum and maximum amounts – Minimum loan amount is Shs: 300,000,
    Maximum loan amount is based on performance and ability to pay by the customer.
  • Security requirements: Loans shall be secured with a combination of securities. The securities
    shall cover at least 150% of the loan amount. One or a combination of the following shall be
    acceptable as security;
  • Immovable Securities e.g. Land or buildings;
  • Moveable Securities e.g. Vehicles, chattels like household items, or stocks of goods;
  • Guarantors e.g. Group guarantee, Personal, company or employer guarantee
  • Land titles securing Micro Business Loans will not require the registration of a mortgage
    prior to disbursement. The land titles will be taken as security, but registration of mortgage
    will be done not later than 1 month after loan disbursement. Verification of land title MUST
    be done by legal department before loan approval and disbursement.
  • Eligibility Requirements: The applicant must fulfill the following requirements to qualify for a
    micro or small business loan;
  • To have a minimum of 6 months experience in the business to be financed as an owner
    and to have expertise in the business to be financed
  • To have established business within 60 km radius from branch’s operational office.
  • To reside within the branch’s operational area
  • In case of liquidity shortages or other operational capacity constraints, preference shall be
    given to those clients who have had good credit history for three loan cycles or more;
  • The business to be financed must have a regular cash flow; exceptions can only be made
    for schools.
  • The applicant may have an outstanding loan facility at the time of applying for another;
    however, the current must have been paid up to 80%.

Individual Agricultural Loan Product.

DMF targets the following sub-segments of farmers for their individual loan product. The primary targets are
individual farmers in the DMF’s current areas of operation, mainly Ibanda, Kampala, Wakiso and Mityana.
Purpose
The product will specifically be offered to individual farmers (both crop and animal production) for activities
that include:

  • Production
  • Post-harvest
  • Agricultural input dealers
  • Agricultural asset financing

Land acquisition etc. Eligibility
The following key criteria will be used to conduct preliminary assessment of the farmers interested in the
product:

  • A farmer who is above the legal age of the majority in Uganda – 18 yrs.
  • A farmer who is engaged in a legal small, medium scale farming enterprise(s).
  • The farmer must have been in the growing of the product at lease for two seasons.
  • Have appropriate collateral.
  • Have a demonstrated ability/capacity to repay the loan through the primary farming enterprise or secondary sources of income.

Provide family consent and local leaders’ recommendation.
Loan Term: 4 to 12 months for the 1st cycle and a maximum of 24 months for subsequent loans with

different pay back methods i.e. Weekly, Monthly, Quarterly, semi annually.

Grace Period: This product shall have a grace period of up three month on principle while interest shall be

paid on a monthly basis.

Loan amount: The loan amounts shall range between 300,000/= to 5,000,000/= depending on the capacity

of the client and the collateral offered for the facility.

Groups Loan Product.

Our group loans allow members in the group to receive loans at different intervals and with varying loan
pay back periods in the same group depending on the need of the customer especially from the second
cycle. This will allow retention of good paying customers and also encourage prepayments for customers
who do seasonal businesses.

  • Group size – No of people in a group 10- 30 members.
  • Initial loan amount – Minimum individual first loan Ushs 100,000. The ceiling for group
    guaranteed loans will be Ushs 3 000,000= per individual hence all members intending to take
    above that amount will graduate into individual loan product.
  • Loan cycle/Term – Period in which to repay loan: 4-6 months for 1 st to 3 rd cycles and from 4 th
    cycle can go up to 12 months.
  • Pre credit training -Time taken by group to undergo training before loan access: 1-2 weeks.
     Meeting Frequency – When groups meet to repay: Weekly/bi monthly or monthly.
  • Loan collateral fund – This will always be 10% of the loan refundable on completion of the Loan.
    (Pre-credit Compulsory Saving).

Salaried Loan Product.

In order to access this loan product:-

Must be employed by a credible institution on a permanent or contractual basis
Must have recent pay slips at least for three months
Valid identification documents
Bank statement for at least last six months
Must have a letter of undertaking from the employer or Credit Committee can decide otherwise.
Must have consented to provide post-dated cheques for the stated loan amount disbursed.
The following policies shall apply:

  • Loan Term: 4 to 6 months for the 1st cycle and a maximum of 24 months for subsequent loans but
    not forgetting the contract end date.
  • Loan amount: 50% of net monthly pay X loan period. (in case a bigger loan more than 50% is
    required client can be considered under the other loan products)