To access a loan from Vision Fund Zambia, you'll need to meet specific requirements, which may vary depending on the loan type. Here are the key requirements:
Individual Loan Requirements
- Active Business Operations: You should have an existing business or be engaged in income-generating activities.
- Loan Purpose: To finance income-generating activities, including small businesses and agricultural projects.
- Eligibility: Targeted at individuals with existing businesses or viable business plans.
- Loan Amounts and Terms: Specifics vary based on the client's needs and repayment capacity.
Group Loan Requirements
- Group Formation: Clients form groups, collectively responsible for loan repayment.
- Loan Purpose: Primarily to support income-generating activities among members.
- Eligibility: Suitable for individuals without substantial assets but with a stable business or income source.
- Methodologies: Vision Fund offers two group loan methodologies:
1. Solidarity Group Lending (Pamodzi): Fosters community support and accountability, ensuring higher repayment rates and financial discipline.
2. Savings Group Linkage Loans: Provides loans to groups who sign up to the digital savings solution, aiming to improve efficiency and security for savings groups.
Vision Fund Zambia Loan Types
1. Individual Loans: Designed to provide working capital to low-income entrepreneurs, enabling them to start or expand their businesses. Loan amounts and terms vary based on client's needs and repayment capacity.
2. Group Loans: Offered through two primary methodologies:
- Solidarity Group Lending (Pamodzi): Fosters community support and accountability, ensuring higher repayment rates and financial discipline.
- Savings Group Linkage Loans: Provides loans to groups who sign up to the digital savings solution, aiming to improve efficiency and security for savings groups.
Key Features
- Low Interest Rates: Vision Fund loans have lower interest rates compared to other loan providers.
- Flexible Repayment Structure: Loan repayment terms vary based on client's needs and repayment capacity.
- Training and Support: Vision Fund offers training on basic financial management, business planning, and customer relations.
- Repayment: Ranges from 6 months to 1 year for agriculture loans.
- Loan amount: From K3500 to K20,000. Larger amounts are typically given to individuals with assets.
- Consists of minimum 5 members living in the same community.
Vision fund group rules
1. Group Composition
- Minimum Members: 5
- Maximum Members: 10–15 (depending on loan program)
- Eligibility: All members must be trusted by the group, financially active, and without existing unpaid loans elsewhere.
- Collective Responsibility: All group members are jointly responsible for repaying each other's loans.
- If one member defaults, the group must repay on their behalf.
- Peer pressure and mutual trust drive repayment.
- Members must attend mandatory training and orientation.
- All members must contribute to regular group savings (e.g., weekly or monthly).
- Only after a probationary savings period (e.g., 4–8 weeks), loans are disbursed.
- Loan Amount: Depends on the group’s saving capacity and repayment history.
- Repayment Period: Typically 6 to 12 months.
- Interest Rate: Transparent and fixed (e.g., 1-2% per month).
- Installments: Weekly or bi-weekly, to match members' cash flow.
5. Meetings and Attendance
- Regular group meetings (weekly or bi-weekly) are mandatory.
- Attendance is required for: Collecting repayments, Approving new loans and Resolving issues
- Absence without valid reason may lead to penalties or suspension.
- Late Payments: May incur a penalty fee.
- Missed Installments: After a grace period, the group is expected to cover the amount.
- Chronic Defaulters: May be removed from the group or barred from future borrowing.
- Members must monitor each other’s businesses or income-generating activities.
- Regular updates on use of loan funds are expected.
- Loans must be used for approved purposes (e.g., business, farming, not consumption or gambling).
- Members contribute a fixed amount to group savings each cycle.
- Savings may act as collateral or emergency support fund.
- Group selects a Chairperson, Treasurer, and Secretary.
- Leaders facilitate meetings, keep records, and ensure rule compliance.
- Leadership rotates every 6–12 months to avoid power concentration.
10. Dispute Resolution
- Disputes are first resolved within the group.
- If unresolved, escalate to the loan officer or organizing institution.
- Transparency and consensus are encouraged.
Vision Fund Zambia offers loans with competitive interest rates, and the requirements may vary depending on the specific loan product. Branches available in Chongwe and Lusaka
