Savings-Led Loans

The Savings-led loans  allow potential borrowers, who are too poor to meet existing eligibility criteria to join the program by participating in a savings deposit program. Under this scheme, a poor borrower has the opportunity to accumulate savings over time until a threshold is reached.  The threshold is defined between the credit officer and the prospective client.

The loan size is determined by multiplying the savings amount by a factor of 2 up to a maximum loan amount of $1,000. Beyond a loans size of $1,000, all other loan eligibility requirements especially, capacity to pay from existing cash flow will apply.

Purpose of Savings-led Loans

The purpose of the savings-led approach is to remove some of the collateral and guarantor requirements that may be a major impediment for very poor clients in the beginning. By beginning with savings, poor clients can work their way up the ladder to obtaining or meeting loan eligibility requirements in which their savings deposit become the key collateral element.


The target of savings-led loans is the very poor who cannot readily meet collateral or guarantor eligibility requirements.


  • Facility range: USD 600 (minimum) to USD 7,000 (maximum)
  • Methodology: Individual lending and liability
  • Duration: 6 months to 24 months
  • Repayment frequency: Monthly
  • Clients must be Responsible


  • Access to funds for business expansion
  • Access to other business loan products to strengthen client’s enterprise
  • Flexible repayment structure
  • Training on basic financial management, business planning and customer relations
  • Low interest rate
  • Expert financial advice available


  • Duly completed application form
  • 2 guarantors
  • 2 recent passport-size photographs
  • A valid means of ID (national ID, driver’s license, voter’s card or passport)
  • Proof of business ownership and income