Indo Zambia Bank products for women and youth - Zambia
- Zambia
- Resources
- Access to Finance
- Access to Capital
- Access to Capital
Access to capital for women entrepreneurs in Zambia
The Bank of Zambia (Boz) marked a major step in advancing women’s financial inclusion after unveiling the results of a landmark survey that found women in Zambia inherently face more challenges in accessing formal financial products and services. The main purpose of the survey was to determine the levels of access, usage and quality of financial services; identify barriers to women financial inclusion as well as assist with modifying the existing policies, strategies and regulatory measures. The bank used gender specific data to identify key barriers facing women in accessing financial services.
The findings helped the Central Bank to have a better understanding of the “magnitude of the financial inclusion gender gap” and be able to develop policies that specifically target women’s financial inclusion”. A number of financial products are available for use by women in business.
Indo Zambia Bank products for women and youth
Name of financial institution:
- Indo Zambia Bank Ltd
Financial products targeting women in business:
1. Self Help Group Loans
Self Help Group Loans extended to women’s groups to finance joint group or individual group members’ income generating activities.
Interest rate:
- Interest rate is currently charged at concessionary rate of 9.50 percent over Bank of Zambia (BOZ) Policy Rate (presently 10.25 percent) effective 19.75 percent per annum. floating
Collateral:
- These loans are collateral free
Ceiling amount:
- Ceiling amount is restricted to 3 times annual group savings
Repayment period:
- Maximum repayment period is 36 months
Number of installments:
- Installment amounts will depend on the quantum of loan financed and repayment period
2. IZB Business Finance
Working capital support to finance business requirements for trading units, service providers, and sole traders which are established by the bank’s existing current account or advance account customers having accounts with other Banks and satisfactory business dealings for the last 1 – 2 years. The finance is extended on relaxed terms in form of fund and non-fund-based exposure for working capital purposes by way of overdraft, letter of credit and bank guarantee. Underlying strength of product is profitable business operations and availability of adequate security.
Interest rate:
- Interest rate is currently charged at concessionary rate of 19.50% over BOZ Policy rate effective 29.75% p.a. floating.
Collateral:
- Collateral is by way of legal mortgage over landed property.
Ceiling amount:
- Quantum of finance is 20 percent of projected sales or 50 percent of forced sale value of property whichever is lower. The underlying strength of the product would be the Forced Sale value of the landed property.
Repayment period:
- Revolving line of credit valid for 12 months subject to renewal on expiry and satisfactory performance.
3. Equity release
Product running on attractive terms to enable customers get cash back out of their existing properties for their personal and business requirements.
Product available to:
This is available to bank clients established by the Bank’s existing current account or other Bank’s advance account who have satisfactory dealings for the last one (1) to two (2) years. These include:
- Existing for individuals;
- Trading units;
- Service providers; and
- Sole traders
How finances are disbursed:
The finance is extended in form of a loan credited directly to the customer’s account held with the Bank. Underlying strength of the product is the availability of adequate capacity to repay and security.
Interest rates:
- Interest rate is currently charged at concessionary rate of 14.75 percent over BOZ Policy rate effective 25 percent per annum floating.
Collateral:
- Collateral is by way of legal mortgage over landed property.
Ceiling amount:
- Maximum quantum of finance is 50 percent of forced sale value of property or actual requirement whichever is lower. The underlying strength of the product would be the Forced Sale value of the landed property.
Repayment period:
- Repayable over a maximum period of 20 years in case of individual borrowers and 8 years in business units, in suitable repayment schedules synchronized with the cycle of receipt of income.
*Note: All other available credit facilities based on nature of cost being financed or purpose.
For more details visit www.izb.co.zm
Approved product -specific features
Application criteria:
The Bank has a decentralized Credit System and customers submit their applications through the Bank’s branches where the existing customers’ accounts are held or Branches within reach of the customers in case of prospective customers who have banking relations with other banks or financial institutions.
This also achieved through contact with the Resource Person at the Head Office:
Ms. Karen Mutale Chilando
The Manager Credit and Head of Corporate Credit
Tel: +260 211 229164 Ext 142
Tel/Fax: +260 211 238959
Mobile: +260 976943364
Email: chilandok@izb.co.zm
Bank’s credit/policy checklist for standard required information:
For more details visit www.izb.co.zm
Specific services offered by the financial institution to help women effectively utilize the loan contracted:
Financial advisory services, through regular physical visits by the Bank’s officials to the business units and through business meetings held with the Resource Person at the Head Office:
Ms. Karen Mutale Chilando
The Manager Credit and Head of Corporate Credit
Tel: +260 211 229164 Ext 142
Tel/Fax: +260 211 238959
Mobile: +260 976943364
Email: chilandok@izb.co.zm
Events to enhance access to finance by women:
Periodical events are organized and through participation in stakeholder meetings and programs organized by the Government, Bank of Zambia and other cooperating partners.