FINCA and FOCCAS clients are encouraged to add voluntary savings to this payment.
The initial loan size varies from $44 for FOCCAS clients to $132 for PRIDE clients.
The repayment period for FINCA and FOCCAS loans is 16 weeks.
FOCCAS. While all three MFIs in this survey train their credit groups in the banking skills necessary for credit association management.
At the end of a 16 week cycle, both the principal and interest are returned to FOCCAS. After the first loan cycle, each member may increase the size of her loan by 50% more than the preceding loan, assuming that her savings are equal to 5% of the loan request, that the group's aggregate request is supported by cumulative savings of 5%, and that the group as a whole approves the new loan.
In Kampala and Mbale, non-clients spent more on enterprise fixed assets ($192 and $25 respectively) than either FINCA clients in Kampala ($128) or FOCCAS clients in Mbale ($20).
A loan from PRIDE, FINCA, OR FOCCAS was used by fewer than 10% of the clients to make these purchases, and there was no discernable difference between first time and repeat borrowers.
In Mbale, FOCCAS clients spent more ($52) than non-clients ($41).
In this sample, the average amount of client loans ranged from $83 for FOCCAS clients in Mbale to $131 for FINCA clients in Kampala.
Client respondents had all received at least one loan from either PRIDE, FINCA or FOCCAS. Among the client respondents, 60% were first-time borrowers.
FINCA and FOCCAS serve women and hence both the client and non-client samples in Kampala and Mbale are composed solely of women.
Participation in the credit and savings programs of FINCA, PRIDE, and FOCCAS helps to instill financial discipline.