General Loan Conditions

All loans from QCSMCSL are subject to the following conditions:

• Borrower must be a member in good standing for at least 3 months
• Loan amount is based on savings multiplier and ability to repay
• Interest rates are set by the Board and communicated to members
• Loans are disbursed within 5-10 working days of approval

Loan Application

To apply for a loan:

• Complete the loan application form
• Provide two guarantors who are QCSMCSL members
• Submit required supporting documents
• Await approval from the Loans Committee

Repayment Terms

• Repayments are made through monthly payroll deductions
• Maximum repayment period varies by loan type (12-48 months)
• Early repayment is allowed without penalty
• Defaulting on payments may result in guarantor liability

Guarantor Responsibilities

Guarantors agree to:

• Repay the loan if the borrower defaults
• Have their savings used as security if required
• Maintain membership until the guaranteed loan is fully repaid

Default and Recovery

In case of default:

• The Society will attempt to recover from the borrower first
• Guarantors will be called upon to fulfill their obligations
• Legal action may be taken as a last resort
• Defaulters may be suspended from accessing further loans

Insurance

All loans above UGX 5,000,000 include a mandatory loan protection insurance to cover the outstanding balance in case of death or permanent disability.

Last updated: February 2026