LOANS
Loan... What is it?
A loan is a form of debt incurred by an individual or other entity. The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions.
Why are Loans Used?
Loans are advanced for a number of reasons, including major purchases, investing, renovations, debt consolidation, and business ventures. Loans also help existing companies expand their operations. Loans allow for growth in the overall money supply in an economy and open up competition by lending to new businesses.
Components of a Loan
There are several important terms that determine the size of a loan and how quickly the borrower can pay it back:
* Principal: This is the original amount of money that is being borrowed.
* Loan Term: The amount of time that the borrower has to repay the loan.
* Interest Rate: The rate at which the amount of money owed increases, usually expressed in terms of an annual percentage rate (APR).
* Loan Payments: The amount of money that must be paid every month or week in order to satisfy the terms of the loan. Based on the principal, loan term, and interest rate, this can be determined from an amortization table..
Tips on Getting a Loan
In order to qualify for a loan, prospective borrowers need to show that they have the ability and financial discipline to repay the lender. There are several factors that lenders consider when deciding if a particular borrower is worth the risk:
1 Income: For larger loans, lenders may require a certain income threshold, thereby ensuring that the borrower will have no trouble making payments. They may also require several years of stable employment, especially in the case of home mortgages.
2 Credit Score: A credit score is a numerical representation of a person's creditworthiness, based on their history of borrowing and repayment. Missed payments and bankruptcies can cause serious damage to a person's credit score.
3Debt-to-Income Ratio: In addition to one's income, lenders also check the borrower's credit history to check how many active loans they have at the same time. A high level of debt indicates that the borrower may have difficulty repaying their debts.
Read More on Types of Loans...
1. Local Government advertises invitation for empowerment loan submissions
2. Cooperatives, Clubs, Associations and Organised Groups apply using APPENDIX D Form
3. Application forms must be typed or filled in a clear handwriting
4. Application is submitted to Ward Development Commitee
SELECTION CRITERIA
Applicants
1. Must be a legally registered entity fully owned by Zambian Youth
2. Registered with PACRA, Registrar of NGOs and other registration bodies
3. Present a viable business/Project proposal
4. Proof of a bank a account or mobile wallet
5. Proposals should provide employment oppertunities
6. The proposed project should be undertaken within the Constituency
7. Must have been residents in the Constituency for over 6 months
DOCUMENTS FOR EMPOWERMENT LOANS
Applicants/prospective beneficiaries must posses
1. Avalid certificate of the entity from PACRA, Registrar of NGOs, ZAMBIA AGENCY FOR PERSONS WITH DISABILITIES, Registrar of Cooperatives or other Registration Bodies;
2. Green National Registration Card
3. A letter of recommendation from a Civic Leader, Religious Leader, Traditional Leader, Commissioner of Oaths or Bank Manager
4. Proof of a bank account or mobile wallet registered for the group
NOTE: Empowerment funds cannot be accessed by anyone in formal employment
What makes a good small business idea?
Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.
Let’s go over what makes a good business idea:
Requires little to no training.
A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
Requires low setup costs.
Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
Requires little hands-on inventory or supply management.
A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
Is based online.
The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
Can sustainably be managed by few people.
As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.
Best Small Business Ideas
1. Handyman
2. Woodworker
3. Sewing and Alteration Specialist
4. Freelance Developer
5. Freelance Graphic Designer
6. Videographer/Photographer
7. Clothing Boutique Owner
9. Tutor
10. Consultant
11. Event Planner
12. Gym Owner
13. Poutry
14. Farming
15. Salaula
16. Electric Repair
17. Gabbage Collection
18. Milling
19. Piggery
20. Restraunt
More...
