The client is a 56years old business man residing in Gayaza, Bulamu Deputy Village LC1, Bulamu Parish, Wakiso. He is currently single after separating with his wife. The client joined ECLOF in 2017 with only one business and source of income Carpentry. He has so far borrowed 7 loans from ECLOF of Ugx.1.5m, Ugx.2m, Ugx.2m, Ugx.3m, Ugx.5m, Ugx.5m and Ugx.5m respectively. All loans were for working capital for his business.
From the profits, the client managed to start construction of rental units in his vacant land and currently he has over 8 rental units fetching him an average monthly income of Ugx.2m separate from his carpentry business.
Reasons for choosing ECLOF
- Flexibility of ECLOF in terms on payment mode i.e. Use of mobile money to make his monthly instalments such that he doesn’t have to come to the office.
- Flexibility is collaterals used. Client uses land sales agreement (Kibanja) of his home in Gayaza Bulamu Deputy.
- Low turnaround time for his loan applications.
- Financial Literacy. ECLOF has taught the client saving discipline, making business records and using loan proceeds effectively to avoid diversion.
- Responsible lending. He started with small loans and kept graduating according to his incomes.
Benefits that the client has acquired
- Increased incomes. Currently client earns from his carpentry business and his rentals.
- Due to his success in business, he has managed to purchase additional land to put up more rental units.
- Financial Independence. He no longer struggles to look after his children as a single father.
Challenges that the client faces
- Inconsistencies in revenue collections. How to manage rental income tax.
- Price fluctuations in types of wood used in making furniture affecting prices of finished goods.
Non – financial services that Eclof has provided include the following
Financial literacy i.e. Uses of keeping records and Saving for other investments.