What Is Yetu Loans?
(YETU) is a microfinance bank in Uganda. It is the first microfinance institution to be listed in the Dares Salaam Stock Exchange. Yetu is a Swahili word meaning Ours.
How To Register For Yetu Loans In Uganda?
Over 87% of rural women are excluded from financial services, majority of whom (62%) are youth females below 36 years. Over 13.3% of youths are unemployed and those who are employed are highly likely to be underemployed, in precarious and non-rewarding work, or in jobs that cannot offer decent incomes. 83.5% of the Ugandan population aged between 15-29 work in informal jobs, and that figure is 10% higher for young women. In rural communities, young women lack the collateral to access and utilise credit and on other hand financial institutions are concentrated in urbans areas. This leaves out a big percentage of youths who are in rural communities. There are several barriers for youths especially young women to access financial services including the perception that they (financial services) expensive, illiteracy, long distances to financial service providers, lack of collateral for credit among others. Despite having brilliant entrepreneurship ideas, there are limited doors to opportunity and knowledge about existing youths and women support programs.
What Should I Know Before Getting A Yetu Loan?
Factors to Consider Before Taking a Yetu Loan
- Type of Loan. You should decide on the type of loan you want to take as many types of loans are available.
- Interest Rates.
- Credit Score.
- Repayment Term.
- Your Financial Situation.
- Your Debt-to-Income Ratio.
- Value of Your Collateral.
- Liquid Assets.
How Do I Get A Yetu Loan In Uganda?
Guarantors who must be persons of good repute within the local community.
- Current or Savings Bank account.
- Completed the loan application.
- Payment of loan processing fee.
- Trading license.
- Existing enterprise, at least 3 months old.
- Must have or open an account with Yetu Bank.
What Questions Should I Ask When Getting A Yetu Loan?
Questions to Ask When Getting a Yetu Loan
- How much should I borrow?
- How long will it take to get the money?
- What do I need to take out a loan?
- How do I know what my current credit score is?
- What is the interest rate on the loan?
- How does the loan repayment work?
- What is the term of the loan?
- Are there any fees?
What Are The Risk Of Borrowing Yetu Loans?
Why Borrowing Money Is Risky
But having a new debt you need to make payments on can also create extra financial risk. Here are some of the dangers tied to borrowing money: Damaging your credit: Whether you have a loan or a credit card, making late payments or missing payments can cause your credit score to fall.
What Are The Documents Required For Mobile Yetu Loans?
The sales representative requires you to fill in an application, submit photocopies of your ID proof, address proof, and income proof. You can then pay for the purchase as using your debit card, internet banking account, or by issuing post-dated cheques.
How Do I Ask My Yetu For A Loan?
The loan application process is easy to start: Simply tell the lender you want to borrow money, and tell them what you’re going to do with the funds (if required). They will explain the next steps and how long the process will take.
What Are The Disadvantages Of Yetu Loans?
You could be paying interest on funds you’re not using. You could have trouble making monthly repayments if your customers don’t pay you promptly, causing cash flow problems. In some cases, loans are secured against the assets of the business or your personal possessions, eg your home.
Are Yetu Loans Safe?
Yetu loans are safe if they come, credit union or reputable online lender that checks your credit, fully discloses the costs and terms of the loan, and takes steps to ensure the loan won’t overwhelm your finances. The risks have to do with your ability to repay the loan and the impact on your credit.
What Are Advantages Of Loans?
Low Interest Rates: Generally, bank loans have the cheapest interest rates. The rates you pay will be cheaper than other types of high interest loans, such as venture capital. As Bizfluent says, bank loans offer significantly lower interest rates than you will find with credit cards or overdraft.