BITTERSWEET TRADE & INVEST 16 COMPANY
PRODUCT SHEET (for planned group loans product)
MASAKHANE LOANS (GROUP ENTERPRISE LOAN)
DESCRIPTION
LOAN AMOUNTS
LOAN TERMS
FREQUENCY OF REPAYMENT
INTEREST RATE* AND ADMIN FEES
GUARANTEES AND COLLATERAL
ELIGIBILITY CRITERIA
OTHER REQUIREMENTS
COMPULSORY SAVINGS
LOYALTY INCENTIVES
ARREARS PENALTIES
VALUE PROPOSITION
* Subject to change based on current Repo Rate and NCR changes to allowable fees
 This loan product is administered through the group lending methodology.
 A loan is extended to a group which consists of members in groups of 5 to 10.
 The loan is divided into sub-loans made to individual members that are managed by the group who all
guarantee the other.
 The target market is peri-urban, rural and urban
 Gender: women only
 Group members first undergo training for 3-4 weeks to ensure that each member understands their
rights and responsibilities are e.g. making compulsory savings, developing group by-laws, attend
weekly meetings, select leadership, hold each other accountable for making repayments and
maintaining savings accounts, support each other, etc. During the training they also get to know the
BTI Pty LTD Company’s loan policies and procedures.
 Repayment of a loan is done as one installment. However their ability to repay depends on group peer
pressure, group cohesion and co-guarantor ship.
 Individual members in a group appraise each other and the Loan officer appraises the group as a
whole.
First Loan Cycle Range: R 600.00 – R 850.00
Second loan Cycle Range: R 1,000.00 – R 1,200.00
Third loan Cycle Range: R 1,500.00 – R 1,850.00
First Loan cycle: Four (4) months
Second loan cycle: Five (5) months
Third loan cycle: Six (6) months
Bi-Weekly (monthly repayments are allowed with prior arrangement)
 Interest is charged on monthly flat rate basis (currently 37.7% per annum as per the National Credit
Regulations).
 Admin fees are also based on the NCR recommendations.
 The members co-guarantee each others’ loans and exert peer pressure on each other to enforce good
and timely repayment.
 The 20% compulsory savings is set aside as collateral for the loan
 Be over 18 years of age
 Well known by the group and accepted to be part of the group
 Have a valid South African ID
 Have a viable income generating activity or been involved in a current legitimate micro-business
venture for at least 6 months
 Have or is willing to save at least 20% of the value of the loan requested
 Be a resident in the catchment area of operation for at least one year
 Are not over indebted
 Not involved in any illegal activity
 Demonstrate financial need due to living in poverty
 Maintain a minimum of 5 borrowers in a group.
 The group should save a minimum of 20% of the loan amount being applied for.
 All clients are encouraged to save on a monthly basis with in the group or individually
Those with good repayment history, maintain regular savings, and regular attendance at group meetings
(at least 85%) get the following benefits:
 Award certificates are issued to Clients who have the best repayment record
 Fast track approval for larger loan amount
 Good possibility for approval to refinance subsequent loans
 Become eligible for the Yakh’umzi Loans
 Invitation to become a member of the Ambassadors Club
 Arrears penalty is automatically charged on the final installment past due at R50 per month from the
first month after the last installment due date
 Ineligibility for increased loan amount on next loan application
 Possibility of ineligibility for any other loan with the BTI Pty LTD Company
 Possibility of being listed with the Credit Bureau
 Affordable interest and admin fees (within the NCR guidelines)
 Quality services
 Easily accessible and convenient loans
 Business development support and mentorship