Types of Collaboration
Collaboration could be in the form of part funding or funds management arrangement with the Bank as the scheme managers.
Funded Collaboration
Collaborating Agency provides fund and the Bank uses its framework for management at a fee as agreed by both parties.
Guarantee Fund
This involves providing a guarantee fund in the ratio to be agreed by both parties. The Bank provides credits while the partners provide the guarantee funds.
Non- Funded
This is an arrangement whereby the collaborating parties organize groups and bring them to obtain credit facility from the Bank on the Bank’s credit policy. The third party does not necessarily make financial contribution but must fully secure and guarantee the facility.
REQUIREMENT FOR COLLABORATION
- Formal expression of interest to collaborate with the bank
- Provide articulated proposal for the collaboration
- A memorandum of Understanding is executed to guide the programme.
- Beneficiaries of the program will enter into account relationship with the bank; disbursement is usually according to bank’s procedure.
- Bank and Collaborating Agency oversee the implementation of collaborative programme to ensure total success.
- Bank and collaborating Agency ensure prompt repayment of loan.
- Beneficiaries will be responsible for the payment of both the principal and interest accrued on the loan.
- The Bank shall take full responsibility on processing of all loans applications as presented/recommended by the parties involved.
- The Bank shall process the application forms, analyse them and determine those that meet the Bank’s minimum lending criteria for approval.
Interest Rates
Interest rates and other bank charges are subject to prevailing money market conditions as may be advised from time to time.
