The main credit products that WML provides include Microcredit, Personal loans (including salaried workers), Group loans, SME loans, Trade Finance (Clearing of Goods at Ports) Micro Leasing and Business credit. There are some restrictions regarding what the credit extended shall be used for.
The following activities is not allowed under credit delivery of WML:
- Payments of other financial obligations from other financial institutions and companies;
- Lending for the production of tobacco;
- Lending to Gaming and Gambling activities;
- Purchase of property not meant for business activities.
- Financing Ammunition and related activities
This is a credit facility for workers in both Government, sub vented organisations and well established Private firms. Features of the loan shall be as follows:
- Loan shall be made on recommendation of the employer who shall undertake to channel payments to WML.
- Total monthly repayment shall not exceed 40% of the net salary of the beneficiary
- Repayments could be by posted dated cheques, payroll deduction or direct electric transfer.
- WML shall have recourse to both the employer and employee in the event of default.
- Copy of appointment letter
- 3months bank statements
- Client should not be on probation
- Signed Undertaking by employer
- 3 months payslip
- Utility bill
This is a credit facility provided to SMEs to support cash flow requirements of the business. The following are the features of credit facility.
- Amount based on cash flow need and size of business operations
- Repaid as (principal with interest) daily, weekly and monthly
- Tenor within 1 month to 6 months from business operations.
- Amount of loan can be topped up in the course of the loan repayment as needed to fund additional working capital requirement. (Note: This will be applicable to only clients with good repayment track record in the subsequent cycles of the loan.
This facility is to assist SMEs and Individuals to acquire equipment for their business operations. Asset financing allows the low income customers to obtain fixed asset without having to tie up their capital equal to the whole value of the goods, since the asset itself remains the property of the lessor.
- Client will be required to contribute 40%-50% of the cost of the equipment and the 60%-50% will be provided as loan by the WML.
- Disbursement of the remainder 60%-50% shall be only available after the 40%-50% contribution has been made by the client.
- Payment will be made directly to the vendor and possible title documents will be transferred in the name of WestOne and kept by WML until payment has been fully settled.
- The equipment shall in addition be used as security for the facility
- The equipment being financed will have to be comprehensively insured.
- Duration of payment shall be over a maximum of 12 months.
This is a product designed to assist commercial drivers in meeting their working capital through fuel purchases:
The following is required of the group:
- Beneficiaries should be unionized city commercial drivers.
- An amount of GHS 200.00 shall disbursed to each driver in a group of five (5) members
- The chairman of the station and secretary shall the group guarantors as well as its members shall be equally liable
- No collateral required
- Lending is over Ten (10) working days duration but renewable every three (3) months
The features of WML Corporate loans are the following:
- This is the type of loan used to finance cash flow gaps of limited liability business. They are of limited amounts and varies depending on the beneficiaries’ use of the loan and debt service capacity of the borrower.
- The frequency of loan repayments are normally weekly or monthly depends on the production or cash cycle of the beneficiaries’ business.
- Loan term may vary from three (3) to Six (6) months, according to the needs of the customer and the debt capacity.
- Applicants will undergo a strict business appraisal process
- Applicants will be required to provide both tangible collateral and guarantors with good net worth.
- Business registration documents
- Board/shareholders resolution
- 6months bank statements
- Audited financial statements for 3years
- Posted dated cheques
- Security coverage value should be 3times the facility requested
WESTONE TRADE FINANCE
This is a facility to enable the client undertake the following activities:
- Pay for import duty and other clearing charges when the goods of the client arrive at the port. (Goods may have to be warehoused under a tripartite collateral arrangement, if necessary)
- Repayment of the credit facility ranges from 30 days to a maximum of 90 days after disbursement and clearing of the goods.
- Disbursement of facility and Payment of port charges shall be made directly to the clearing authorities
- Bill of laden
- Parking list
- Undertaking signed by both clearing agent and the customer
NOTE: WestOne shall not be responsible for payment of Freight charges.
Micro insurance products have been made up to reduce uncertainty and its effects, given the vulnerability of the low income and small business to risk. The most wanted products in microfinance are health and life insurance, and compulsory insurance against loan default. Insurance is a high risk business. Insurance is not a simple business and WML can have more moral hazard problems.
However in order to mitigate risk in our credit portfolio, all loans shall be insured against eventualities. The following insurance packages shall be done:
- Life insurance,
- Property insurance,
- Health insurance and ;
- Disability insurance.