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FACILITY APPROVAL MEMORANDUM

Prepared by : HENRY ADUBOFOUR


Department : INDIVIDUAL LOANS DEPARTMENT
Branch : KEJETIA
Date : 5TH MAY, 2010

Borrower : AFIA MENSAH

Type of business : Alata Soap maker and Seller.

Business location : Central Market, PS 137 Behind cooking Utensil lane.


Facility Type : SHORT TERM LOAN (REGULAR)

Amount : GH¢ 1,500

Purpose : ADDITIONAL WORKING CAPITAL

Tenure : SIX MONTHS

Interest Rate : 42%

Facility Fee : 3.5% Flat of the facility amount

Insurance Premium : 1% of the loan amount .

Availability : The facility will be available upon compliance with conditions precedent
to utilization.

Repayment : Monthly repayment of an amount of GH¢201.57 which includes


principal
and interest of GH¢ 166.67 and GH¢ 35 respectively.

Security : Client has secured the loan with two guarantors namely: Richard Baah
a
Teacher at Dome Beposo (Amansie West District) and Henry Yaw Attah
also a
Teacher at Sepase R/C Primary B, Sepase. Their total strength put together
is
Ghc368.56.

Business Background : Client has been in the soap making and selling business for
considerable number of years. She has gained a lot of experience in the business and business is
doing well.

Banking Relationship

Account name : AFIA MENSAH


Branch : KEJETIA

REGULAR SAVINGS AC: 10051840817 25.56


COMPULSORY ACC : 100318480812 26.26

1
:
Total : GHC 51.82

Conditions Precedent to Drawdown or Utilization

The credit facility shall be available to the borrower upon receipt of the following:

i. Duly accepted offer letter signed by the authorized signatory, AFIA MENSAH
ii. Upfront payment of all relevant fees such as facility fee and insurance premium fees.
iii. Duly signed Loan Contract Agreement by the Guarantor to be liable in the event of
default.
iv. Duly executed fixed and floating charge over all her property.

Other Conditions

i. Payment of all legal expenses (including cost of recovery in the event of default)
Incidental to the transaction to be debited to the borrower’s account.
ii. Undertaking by AFIA MENSAH to inform the Bank in writing, any intention of securing any
form of credit facility from any other lender.
iii. Any other information as may be required in the loan agreement to be made available
to the bank.

CREDIT CONSIDERATIONS AND RECOMMENDATION

We wish to recommend for approval a short term loan facility of GH¢ 1,000 at a monthly repayment
of GH¢ 201.67 to Mr./Mrs./Miss AFIA MENSAH based on the above conditions.

Henry Adubofour
Credit Officer, is ME ---------------------------------------------------------

John Atobra
(Credit Supervisor, is ME) -----------------------------------------------------------

Peter P. Bediako
(BM, Kejetia) ------------------------------------------------------------