UNS-SACCO UGANDA 15A Clement Hill Road | | | CREDIDT COMMITTEE & LOAN APPLICATION GUIDELINES Presentation by Credit Committee

UNS-SACCO UGANDA 15A Clement Hill Road | | | CREDIT COMMITTEE FUNCTION Reviews applications for loans and makes decisions upon such applications within the authority delegated to the Credit Committee. All loan decisions must be based on UNS-SACCO’s established loan/credit policies. Review loan & collection policies along with performance. Recommend changes to the policies to improve loan underwriting & collection efforts. Evaluate lending performance annually and compare it to past periods by reviewing a breakdown of the number and amount of loans outstanding by purpose and collateral, total number and amount of loans approved and declined, the total number of borrowers, the ratio of borrowers to members, the average loan size, the delinquent loan to total loan ratio, and the net charge off/average loan ratio.

UNS-SACCO UGANDA 15A Clement Hill Road | | | LOAN PROCESS The CC meets every Thursday & consists of 3 members – 1 of the 3 is a CC Chairman. The CC evaluates the borrower’s ability to repay the loan and makes a loan decision. The repay period is maximum 18 months, depending on Loan product. The requirements for a successful application via the UNS-SACCO management to the Credit Committee must fulfill the following requirements: A successful application is one meeting the above requirements and the loan is disbursed to the applicant the following day.

UNS-SACCO UGANDA LOAN PRODUCTS D E V E L O P M E N T L O A N Maximum Loan amount UGX 80,000,000 Maximum Loan repayment period 60 months Interest 23% p.a. Changes in interest rates will not affect existing loans Early loan pay off does not attract penalty fee Minimum of 4 months UNS-SACCO Membership Loan Application fee UGX 30,000 Title Search UGX 125,000 Shares 10% of loan amount Two credible guarantors Signed security Deposit Form Insurance premium 1% of loan amount Loan Commission 2% of loan amount Personal Credit Reference Bureau Card Valuation report by UNS-SACCO approved valuer Caveat / Legal fees UGX 655,000 Land title search

UNS-SACCO UGANDA LOAN PRODUCTS O R D I N A R Y L O A N Maximum loan amount UGX 30,000,000 Maximum loan period 24 months Interest is 13% p.a. below UGX 10,000,000 & 16% p.a. above UGX 10,000,000 Standing membership of 4 months Loan Application UGX 20,000 Loan Commission 2% Insurance premium 1% Employee ID Current pay slip Contract Letter Two Guarantors 4 times accumulated savings of the loan amount 10% shares of the loan amount

UNS-SACCO UGANDA REQUIRED SAVINGS STRUCTURE UGX Loan amount and current required minimum monthly savings Loan amountMonthly savings 500,000 ‐ 2,000,000100,000 2,001,000 ‐ 4,000,000150,000 4,001,000 ‐ 5,000,000200,000 5,001,000 ‐ 8,000,000250,000 8,001,000 ‐ 10,000,000300,000 10,001,000 ‐ 12,000,000350,000 12,001,000 ‐ 14,000,000400,000 14,001, ,000,000450,000 16,000,001 – 80,000,000500,000

UNS-SACCO UGANDA 15A Clement Hill Road | | | GUARANTORSHIP GUARANTOR SHIP HAS LEGAL, ECONOMIC, REPUTATION AND SOCIAL EFFECTS The guarantors’ liability act The legal position is clear that: liability of the guarantor and principal debtor are co-extensive and not in alternative. The guarantor is jointly and severely liable with the principal borrower for the principal amount, interest, penalties and other loan recovery and legal costs incurred by the lender. A guarantor is needed in order to reduce the risk of the loan default in a situation where a principal borrower cannot stand in for her/himself.

UNS-SACCO UGANDA 15A Clement Hill Road | | | GUARANTORSHIP What should you do if a person requests you for loan guarantor ship? You must know the loan amount the person has applied for, the loan period, interest rate and installment per month You must know other securities the client has presented for the loan You must know the capacity of the client to pay back You must know if the client has other loan obligations and if s/he is paying well You must know the contract status of the client and any other benefits the client is possessing It’s advised not to guarantee many people at the same time You can contact UNS-SACCO in case you are not sure of the information given by the loan applicant. Read more about guarantor-ship at

UNS-SACCO UGANDA 15A Clement Hill Road | | | LOAN PRODUCTS Loan product Interest rate p.a. Maximum UGX amount Max. period Ordinary13.5 %10,000,00018 Months Ordinary16 %Above 10,000,00018 Months Bank Refinance16 %30,000,00024 Months Emergency24 %2,000,0004 Months Asset Financing16 %50,000,00036 Months Education13.5 %4,000,00012 Months Express36 %4,000,0006 Months

UNS-SACCO UGANDA 15A Clement Hill Road | | | SAVINGS PRODUCTS Savings productsInterest p.a. Free savings3 % Family Golden Savings3 % Family Silver Savings3 % Family Watoto Savings3 %

UNS-SACCO UGANDA 15A Clement Hill Road | | | BECOME A MEMBER MEMBERSHIP IS OPEN TO UN STAFF AND THEIR SPOUSES/CHILDREN UN employee with temporary, fixed or continuous contract Registration fee UGX 10,000 Purchase at least 10 shares, each at UGX 10,000 Two recent passport size photos Non UN employees Spouse Purchase at least 100 shares Initial savings deposit UGX 500,000 Proof of relationship Children Purchase at least 30 shares Initial savings deposit UGX 200,000 Proof of relationship

UNS-SACCO UGANDA 15A Clement Hill Road | | | COMMUNICATIONS and are our main communications channels especially for members outside Kampala but we are happy to serve you at 15A Clement Hill road or via 31 THANK YOU FOR YOUR ATTENTION Presentation downloadable from