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FREQUENTLY ASKED QUESTIONS
GROUP LOANS (Cow & Agriculture)
Q: How long does it take to get a loan?
A: Only 2 weeks!
Q: Why a group loan?
A: This way you can get a loan, even if you have no other guarantees to offer us.
Q: Can I be in a group with a family member?
A: Only if you are not living together in a same household.
Q: In a bank I don't need a solidarity group and I can get an individual loan.
A: True, a bank does not require a solidarity group, but it will require:
1.Co - signers/Guarantors
2.Documentation that the request is legitimate and the business is viable
3.Investigation into the requestor’s background (references, type of business).
4.Salary three times the loan payment
5. Deposits
6. Typically, a long waiting period
In contrast, we will only ask for a solidarity group and a business idea.
Incidentally, if you prefer, you can also get an individual loan with Demos.
GENERAL QUESTIONS
Q: Why do I have to pay interest on the loan?
A: Just as you would get a margin on the products that you sell, we do the same to pay for the business support and capital that we provide to you.
Q: How much is the membership fee, and how often do I have to pay it?
A: The membership fee is 150 kn and it is paid one time only. When you repay your loan you can get it back if you decide not to take another loan with Demos.
Q: What is the administrative fee and why do I have to pay it?
A: The administrative fee is the loan disbursement cost (paperwork, loan officer's visit, etc.) and it varies by which loan you take. In return we come to you, you get the cash, you are not wasting time going to the post office and you do not pay a commission to the post office. The paperwork we ask is much less than what any bank would ask you.
Q: What happens if I do not repay?
A: WE DO NOT TOLERATE LATE PAYMENTS.
Q: Can people employed in state or private companies get a loan with DEMOS?
A: Yes, if they have permanent employment with the company.
Q: What if I am unemployed?
A: You can use a guarantor. Guarantors can be your friends, acquaintances, family members. You do not have to be a guarantor, it can be anyone, as long as they can give DEMOS the confirmation on prohibition of salary. DEMOS will then check this information.
Q: Can I take a loan with DEMOS to repay a house?
A: No.
Q: What is the maximum I can get for a loan? And what does it depend on?
A: The loan amount depends on the guarantees, and which loan you're take.
Q: Do I need to save in order to get the loan with DEMOS?
A: No.
Q: I would like to save with DEMOS, can I do that?
A: Not at the moment, although sometime in the future we may offer this service.
Q: Do I need to join the cooperative in order to apply for a loan?
A: You become cooperative member when you receive a loan, not before.
Q: What happens if somebody in a group can not repay the loan?
A: The other group members are responsible for repayment.
Q: Is DEMOS a Humanitarian Organization?
A: No, we are a Savings & Loan Cooperative, we give loans to people who want to expand their business or start a new one.
Q: I would like to join your program what conditions do I have to fulfill?
A: You need a business idea and guarantees.
Q: I have a loan already with another organization; can I take a loan with DEMOS?
A: If you have guarantees, you can apply for a individual loan from DEMOS.
Q: Is the information in the business plan confidential?
A: YES! At Demos, we believe strongly in confidentiality: WHAT YOU TELL US STAYS BETWEEN US!
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