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CREDIT POLICY

B&K Capital Ventures Limited is committed to providing financial solutions to individuals, businesses, and organizations in Uganda. As a responsible and ethical Microfinance Institution, we have formulated a credit policy that sets out our lending criteria, procedures, and guidelines to ensure that our lending activities are conducted in a safe, sound, and responsible manner. Our credit policy is designed to protect our customers, shareholders, and the company as a whole.

 

The purpose of this credit policy is to outline the procedures and guidelines that B&K Capital Ventures Limited will use in making lending decisions and to ensure that all loans made by the company are consistent with its lending objectives and regulatory requirements.

Credit Risk Management

B&K Capital Ventures Limited will follow a prudent credit risk management approach to ensure that all loans made by the company are of high quality and comply with regulatory requirements. This approach will include the following:

 

  • All borrowers will be evaluated on their creditworthiness before any loan is approved.

  • The company will assess each borrower's financial history, income, credit score, and other relevant factors before approving a loan.

  • The company will maintain a sound credit culture to ensure that all loans are made in accordance with applicable regulations and industry standards.

  • The company will conduct periodic reviews of its credit risk management policies and procedures to ensure that they remain effective and relevant.

Lending Criteria

B&K Capital Ventures Limited will only lend to individuals and businesses that meet our lending criteria. Our lending criteria include the following:

 

  • The borrower must be at least 18 years old.

  • The borrower must have a regular source of income.

  • The borrower must have a good credit history and payment behavior.

  • The borrower must have collateral to secure the loan or reputable Guarantors that can take on their Liability.

  • The borrower's creditworthiness and ability to repay the loan.

  • The purpose of the loan and the expected benefit to the borrower.

  • The borrower's income and expenses.

  • The value and condition of any collateral offered to secure the loan.

Loan Application Process

Our loan application process is straightforward, and we ensure that it is easy for our customers to understand. The process includes the following steps:

 

  • The borrower fills out an application form on our Website.

  • We verify the borrower's information and conduct a credit check.

  • We evaluate the borrower's creditworthiness and determine the amount and terms of the loan.

  • We provide the borrower with a loan agreement that sets out the terms and conditions of the loan.

Loan Approval

B&K Capital Ventures Limited will follow a rigorous loan approval process. We will only approve loans that meet our lending criteria that includes the following steps:

 

  • Loan applications will be reviewed and evaluated by the company's credit committee.

  • The credit committee will assess the borrower's creditworthiness and ability to repay the loan.

  • The credit committee will also evaluate the purpose of the loan, the expected benefit to the borrower, and the value and condition of any collateral offered.

  • The borrower's ability to repay the loan.

  • The value and quality of the collateral.

  • Once the loan is approved, the company will provide the borrower with a loan agreement that outlines the terms and conditions of the loan.

Interest Rates and Fees

Our interest rates and fees are competitive and transparent. We disclose all fees and charges associated with our loans upfront, and we do not charge any hidden fees. Our interest rates and fees are based on the following factors:

 

  • The borrower's creditworthiness.

  • The amount and term of the loan.

  • The value and quality of the collateral.

Loan Repayment

We expect our borrowers to repay their loans on time and in full. We offer flexible repayment options to our customers, including weekly, bi-weekly, and monthly payments. We accept payments through different modes like Mobile Money, Bank and Cash.

Loan Collection

In the event that a borrower defaults on their loan, we will take appropriate measures to collect the outstanding debt. We will follow all legal and ethical guidelines when collecting debts, and we will work with our borrowers to find a solution that is mutually beneficial. B&K Capital Ventures Limited will follow a fair and ethical collection and recovery process in the event of loan defaults. The company will make every effort to work with borrowers to resolve any payment issues before taking legal action. However, in cases where legal action is necessary, the company will follow all applicable laws and regulations.

Documentation and Record-Keeping

B&K Capital Ventures Limited will maintain complete and accurate documentation and records of all loans made by the company, including loan applications, loan agreements, and repayment schedules.

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