In a time where economic challenges seem to be the order of the day, a remarkable group of young and compassionate individuals has embarked on a mission that reflects both generosity and foresight. As I pondered their initiative, it became clear that their actions are not just commendable but hold the potential to reshape the financial landscape for traders and entrepreneurs facing the hurdles of escalating commodity prices and merciless loan sharks

These individuals, acknowledging their own little blessings, have pooled resources into a capital fund. The primary aim? To provide much-needed financial support to those navigating the complexities of today's economic climate. What sets this initiative apart is the decision to offer loans at a flat interest rate of 5%. It's not just a gesture; it's a tangible step towards alleviating the financial burdens that many are grappling with.

Now, you might wonder, what's the catch? Well, the beauty of this endeavor lies in the carefully crafted rules and conditions designed to protect the integrity and sustainability of the system. These measures ensure that the privilege is not abused, fostering a sustainable and responsible lending and social environment.

As I delved into the terms and conditions set forth for those interested in joining this community, it struck me that this is more than just a financial opportunity; it's a chance to be part of a community-driven solution. The question that echoes through this initiative is a simple yet profound one: If presented with the opportunity to access a loan of 15,000 Naira at a mere 5% interest rate, with a 6-week repayment window, what do you think about it? Can you envision yourself utilizing it effectively?

This initiative not only extends a helping hand but also prompts us to reflect on the impact such collaborative efforts can have on individuals striving to navigate the economic currents. It's a testament to the power of communal support and the belief that by pooling resources and setting fair terms, we can foster an environment where entrepreneurship can thrive despite economic challenges.

In the spirit of practicality and relatability, can we embrace this opportunity not just as borrowers but also as contributors to a community-driven solution?

Let me hear your view.

Extend it to 8 weeks/2 payment .

GideonOludayomi:

What sets this initiative apart is the decision to offer loans at a flat interest rate of 5%. It's not just a gesture; it's a tangible step towards alleviating the financial burdens that many are grappling with.

The question that echoes through this initiative is a simple yet profound one: If presented with the opportunity to access a loan of 15,000 Naira at a mere 5% interest rate, with a 6-week repayment window, what do you think about it? Can you envision yourself utilizing it effectively?

Let me hear your view.

Anything to ameliorate the suffering of the masses is commendable but the following should be noted
1st: At 5% interest in just a month of holding the funds, that implies interest rate of 60%pa which is almost 3 times of bank lending rate.
2nd: The funds is only suitable for micro traders. Those who petty-trade on a daily like pure water, puff puff, and can set aside N50 daily after their feeding and any other trading expenses like ground rates.
3rd: If repayment is mandatory without an option of rolling over/ renewing the loan then it might imply shutting down the business in an effort to pay off the loan thereby defeating the initial aim of supporting the micro trader. Except the loan is for already established micro traders.

MrNovo:

Anything to ameliorate the suffering of the masses is commendable but the following should be noted
1st: At 5% interest in just a month of holding the funds, that implies interest rate of 60%pa which is almost 3 times of bank lending rate.
2nd: The funds is only suitable for micro traders. Those who petty-trade on a daily like pure water, puff puff, and can set aside N50 daily after their feeding and any other trading expenses like ground rates.
3rd: If repayment is mandatory without an option of rolling over/ renewing the loan then it might imply shutting down the business in an effort to pay off the loan thereby defeating the initial aim of supporting the micro trader. Except the loan is for already established micro traders.

Wow. Thank you for your candid opinion. 60% is way out of the picture.

To start with, it's only for already established micro traders. Although, I do not fully understand what you mean by rolling over/renewing, the idea is to make sure that a trader can access their first loan for 6 weeks. So, if they collect 15000 + 5% which equals 15750, what they will pay back exactly is 15750 divided by 6 weeks which equals 2625 naira per week. After repayment, they can reapply for another loan with a longer duration of 12, 18 and 24 weeks, if they so desire.

This is the picture.

However, should you have any suggestion as to how to make it easier and simpler for the traders, kindly share. The loan isn't aimed for profit making but to ensure sustainability and retainership of capital.

Thank you.

blaquemyc:
Extend it to 8 weeks/2 payment .

Awesome! Duely noted. Thank you.

GideonOludayomi:


Wow. Thank you for your candid opinion. 60% is way out of the picture.

To start with, it's only for already established micro traders. Although, I do not fully understand what you mean by rolling over/renewing, the idea is to make sure that a trader can access their first loan for 6 weeks. So, if they collect 15000 + 5% which equals 15750, what they will pay back exactly is 15750 divided by 6 weeks which equals 2625 naira per week. After repayment, they can reapply for another loan with a longer duration of 12, 18 and 24 weeks, if they so desire.

This is the picture.

However, should you have any suggestion as to how to make it easier and simpler for the traders, kindly share. The loan isn't aimed for profit making but to ensure sustainability and retainership of capital.

Thank you.

Okay the bolded is what I was referring to. Since they can reapply for extended loan tenure the concept is great.

MrNovo:


Okay the bolded is what I was referring to. Since they can reapply for extended loan tenure the concept is great.

Thank youuuuuu