Purpose
The purpose of this Loan Policy is to establish guidelines and procedures for the granting and management of loans by Prime biz to eligible borrowers. This policy aims to ensure responsible lending practices, risk management, and compliance with all relevant laws and regulations.
Objectives
The primary objectives of this loan policy are as follows:
- To promote financial inclusion by providing access to credit for underserved and economically vulnerable individuals and microenterprises.
- To assess the creditworthiness of potential borrowers.
- To manage credit risk effectively while maintaining a sustainable loan portfolio.
- To comply with all applicable legal and regulatory requirements governing microfinance operations.
Eligibility Criteria
3.1. Individual Borrowers:
- Must be of legal age ( 20 + ).
- Must be a Sri Lankan citizen.
- Must have a legitimate source of income.
- Must have a satisfactory credit history or demonstrate the ability to repay the loan.
3.2. Microenterprise Borrowers:
- Must be a legally registered microenterprise.
- Must be in operation for a minimum period, as defined in our lending policy.
- Must demonstrate a viable business plan and a clear need for credit.
- Must have a satisfactory credit history or demonstrate the ability to repay the loan.
Loan Products
Prime biz offers a range of loan products tailored to meet the specific needs of individual borrowers and microenterprises. These products may include but are not limited to:
- Individual loans
- Business development loans
Loan Approval Process
5.1. Loan Application:
- Borrowers must complete an online loan application form.
- All required documentation must be submitted with the application
5.2. Credit Assessment:
- Prime biz will conduct a thorough credit assessment to determine the borrower's creditworthiness. Along with the confirmation from the guarantors.
- This assessment includes a review of the borrower's financial statements, credit history, and other relevant factors.
5.3. Loan Approval:
- A loan approve committee, comprising experienced staff members, will review loan applications and make loan approval decisions.
- The committee will ensure that the loan is in line with the borrower's repayment capacity and the company's risk tolerance.
5.4. Loan Disbursement:
- Approved loans will be disbursed promptly to the borrower.
Interest Rates and Fees
Prime biz will charge interest rates and fees that are fair, transparent, and compliant with local regulations. The interest rates will be determined based on the cost of funds, operating expenses, and market conditions.
Prime biz will provide a minimum amount of Rs.5000 to the maximum amount of Rs.30000. In addition to that there is a processing fee/ admin fee will be get added.
Prime biz will provide the minimum repayment date of 10 days and the maximum of 30 days.
Loan Repayment
7.1. Borrowers are expected to make regular and timely loan repayments as per the loan agreement.
7.2. Prime biz will work with borrowers who face difficulties in repayment to develop a reasonable repayment plan or provide appropriate support.
Monitoring and Collections
Prime biz will establish a robust monitoring and collections process to ensure that loan repayments are received on time. This includes regular follow-ups and, if necessary, engaging external collection agencies.
Risk Management
Prime biz will maintain a risk management framework to identify, assess, and mitigate credit risks associated with the loan portfolio.
Reporting and Compliance
Prime biz will regularly report on its loan portfolio and ensure compliance with all applicable laws and regulations governing microfinance operations.
Review and Revision
This Loan Policy will be periodically reviewed and updated as necessary to reflect changes in business practices, regulations, and market conditions.
This Loan Policy has been approved by Prime biz management and is effective from the date mentioned above.
