How It Works
The Tonto Credit & Social Services microcredit method involves the engagement of Ghanaian Diaspora communities as well as other interested investors, willing to invest in the farming and small-scale trading market in Ghana. For a starting investment of not less than €100, investors could contribute to the development of the local community as well as obtain a small to medium return of investment.
Notes
- Under our micro-credit scheme, the primary beneficiaries are groups or cooperative societies comprising a minimum of 5 and a maximum of 25 members. Each individual within the group can access a loan ranging from GHC 500 to GHC 2000. To ensure accountability, we employ a group solidarity mechanism, meaning that the entire group is held liable for repaying the loan. Consequently, the loan is considered unpaid until every member of the group has completed their payments.
- All loans are structured as short-term loans, with a repayment period not exceeding 6 months, during which interest will be applicable. As such, our scheme does not support economic activities with longer gestation periods. Loan repayments are scheduled on a weekly basis.
The Beneficiaries
The current project and region of operation is in Kyirapatre (Kumasi), Ghana. Recipients are traders in the region and like most traders and farmers who are not based in the urban areas, lack the collateral facility to obtain significant long term loans to invest in their business. This is where Tonto Credit & Social Services comes in with small-scale loan facility to meet their needs.
Loan Process
To apply for a loan, please follow these steps:
1. Written Application
Submit a formal written application to any of our Loan Officers, specifying the desired loan amount and the purpose of the loan.
2. Preliminary Assessment
Upon receipt of your application, one of our Loan Officers will schedule an appointment for a preliminary assessment.
3. Guidance and Information
During the meeting, you will receive guidance on best practices, interest rates, and other essential information related to the loan process.
4. Financial Literacy Training
To proceed, you will be required to participate in our financial literacy training program.
5. Loan Application Processing
If you meet the eligibility criteria, we will initiate the processing of your loan application.
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The Investors (Lenders)
Financing for the microcredit loan facility is partly financed by investment from the Diaspora community. For every investment made the ROI ranges from 15 to 20%. At the moment, the investment portfolio is in farming and petty trading. Since the start of the project last year, 75 traders have been recipients of investment loans of close to 80.000 cedis and succeeded to pay back with a total profit of 10% of the investment. Initial investment was provided by Afroeuro Foundation (Netherlands). Request for form