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LOAN FACT SHEET

BRANCH: LUGAZI BORROWER’S NAME: MUHEME ANNET
BORROWER’S ID: 0000255026 BORROWER’S RESIDENTIAL ADDRESS: KISAASI
BORROWER`S NIN: BORROWER’S BUSINESS ADDRESS: KISAASI
BORROWER`S BUSINESS: GOAT, CATTLE AND PIG FATTENING BUSINESS OWNERSHIP TYPE: SOLE PROPRIETORSHIP
DATE OF APPLICATION: 10-02-2022 AMOUNTS RECOMMENDED: UG SHS 16,000,000
AMOUNT APPLIED FOR: UG SHS 16, 000,000 TOTAL EXPOSURE: UG SHS: 16,000,000
LOAN BALANCE: AS AT 10/02/2022: NIL
The borrower’s NIN is already captured in the core banking system.

Terms: Facility Type: AVL Condition:

Interest: 20% 1. Provide consent from one adult child
Application fee: 3% 2. Provide spousal consent to mortgage the unregistered land
Loan insurance Fee: 1% 3. Provide second guarantor outside the
client’s household
Period: 18 months
Repayment: Monthly.

Securities:
 Unregistered land at Kisaasi LC1, Lugazi Municipality Buikwe District measuring approximately 6 acres developed with a a
farm and a residential house where the client stays with her family. The land sales agreement is in the name of Muheme Annet,
the borrower. It has an estimated Open Market Value of Ug shs 60,000,000 and Forced Sale Value of Ug shs 39,000,000.

 Personal guarantee of Muheme Charles (live in partner and a resident of Kisaasi)

Total FSV of the collateral is Ug Shs 39,000,000 which is 243.7% of the loan cover.

Purpose of the Facility(s): Construction of the Pigs sty and diversifying into farming.

Sources of Repayment:
Primary Sources
Net Monthly income from the Piggery project 1,445,752
Less Proposed Monthly installment (1,525,000)
Less family expenses (250,000)
Net Surplus 401,952
Coverage Ratio 0.70

Secondary Sources
Utilization of income from salary
Liquidation of securities pledged in case of default.
Credit History Deposit History -PRIDE
First Loan Date: 25/04/2012 Account Number: 247206025502601
First Loan Amount: 2,000,00 Date Opened: 18/04/2012
Latest Loan Date: 12/10/2019 Average Monthly Deposits Pride (Last 12 months): 410,610
Latest Loan Amount: 9,000,000 The client has an ATM and is enrolled on MPB
Highest Loan Amount taken before: 9,000,000
Number of loans taken: 9
Branch Credit Committee Regional Manager Eastern

Amount Recommended ……………………Terms……………….. Amount approved………................ Terms………………….

Comments Name

Signature;
1.
2.
3.
4.

1
Loan application of Ug Shs 16,000,000 by Annet Muheme
Credit Officer: Saulo Mugwano
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TO: REGIONAL MANAGER EASTERN

THRU: LUGAZI BRANCH CREDIT COMMITTEE
FROM: COMMERCIAL LENDING OFFICER-SAULO MUGWANO
DATE: FEBRUARY 10 2022
RE: APPLICATION FOR A LOAN OF UG SHS 16,000,000 BY MUHEME ANNET
1.0 BACK GROUND
Ms. Muheme Annet was born on 22nd June 1962 to the late Mulongo Henry and Abigail Mulongo of
Budumba Village Butalejja District. She went to Budumba Primary School where she completed
Primary seven in 1977. She then joined Wanyange Girls’ School in Jinja district where she completed
senior four in 1981. In 1982, she got employed with Sugar Corporation of Uganda Limited (SCOUL)
Lugazi in Buikwe district as an Accounts Clerk which position she has held to date. She has progressed
through the ranks in SCOUL over the years to a position of a Supervisor in Finance Department that
she holds today.

While working with SCOUL, Ms. Muheme started engaging in goat, cattle and pig fattening for sale.
She has done that business to date.

Ms. Muheme Annet has been able to acquire assets including Unregistered land at Kisaasi LC1,
Lugazi Municipality Buikwe District measuring approximately 6 acres developed with a farm and a
residential house where the client stays with her family, Unregistered land at Budumba in Butaleja
measuring approximately 1.5 acres developed with residential house and also a banana plantation and
a kibanja undeveloped at Kisaasi village in Lugazi municipality Buikwe district measuring
approximately 5ft*100ft.

Ms. Muheme Annet is cohabiting with Mr. Muheme Charles with whom they have 3 children of ages
28,25 and 20 years respectively.

2.0 BUSINESS OWNERSHIP

Ms. Muheme Annet is a sole proprietor operating an unregistered cattle and goat fattening business at
Kisaasi village in Lugazi Municipality Buikwe district. She has provided a letter from the area
chairperson as proof of business. She has also provided a land sales agreement where she does the
projects from in her names as further proof of business.

She is also Supervisor in the Accounts department in SCOUL since 1982. However, the incomes have
been taken secondary due to lack of enough support documents from the employer.

3.0 BUSINESS OPERATIONS AND MANAGEMENT.

Ms. Muheme Annet operates the goat and cattle fattening project on her land at Kisaasi Bulyantete in
Lugazi Municipality Buikwe district. She buys cattle that are almost ready for slaughter which she
rears for purposes of sell for beef. At the time of appraisal, she had 21 cows and 15 goats for fattening.
Loan application of Ug Shs 16,000,000 by Annet Muheme
Credit Officer: Saulo Mugwano 5
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She buys goats and cattle from Butaleja, Ssi, Ssese-Najjembe, Bulyantete, Buikwe among other places
depending on the availability. She sells the cattle and goats to butchers with in Lugazi Municipality.
She operates the business with the help of three workers that look out for cattle to buy as well look af-
ter them and also find the market for these cattle and goats. These workers are a monthly salary of Ug
Shs 150,000 monthly.
4.0 LOAN AMOUNT AND PURPOSE
Ms. Muheme Annet has applied for a loan of Ug shs 16,000,000 for 18 months to construct a pig sty
and diversify into maize farming.

5.0 SOURCES OF REPAYMENT

Net Monthly income from the piggery project 1,445,752
Add Monthly salary income 731,200
Less proposed Monthly installment (1,525,000)
Less family expense (250,000)
Net Surplus 401,952
Coverage Ratio 0.70
Secondary Sources
Liquidation of securities pledged in case of default.

6.0 LOAN TERMS

Loan amount requested 16,000,000
Loan amount recommended 16,000,000
Loan term recommended 18 Months
Interest rate 20 %(flat rate)
Loan application fee 3%
Loan insurance fee 1%

7.0 BANKING RELATIONSHIP WITH PRIDE AND OTHER BANKS

The client operates account number 247206025502601 with Pride Lugazi. Below is the summary of
her account statements.
7.1 Account No. 247206025502601-Pride Lugazi in the names of Muheme Annet
  CREDIT DEBIT END BALANCE
Opening
balance :     618,543
Feb-21 661,147 567,802 711,888
Mar-21 601,573 594,315 719,147
Apr-21 830 564,203 155,774
Jun-21 1,100,958 1,128,301 128,431
Jul-21 600,283 564,121 164,593
Aug-21 1,000,943 564,220 601,316
Sep-21 100,776 564,195 137,897
Oct-21 450,200 534,546 53,551
Nov-21 3 2,300 51,254
Dec-21 1 2,300 48,954
Jan-22 - 2,300 46,654
TOTAL 4,516,715 5,088,603 3,438,001
AVERAGE 410,610 462,600 286,500
Loan application of Ug Shs 16,000,000 by Annet Muheme 6
Credit Officer: Saulo Mugwano
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The client uses the account mainly for loan repayment. She has been advised to start saving with Pride.

8.0 CREDIT HISTORY

Ms.Muheme Annet has borrowed for 5 times and below is a summary of her loan history.
No Date of Product Loan Loan Term Installment Remarks
disbursement Amount
1 25/11/2012 ILS 2,000,000 12 Months 211,000 Excellent
Repayment
2 15/05/2013 ILS 2,000,000 12 Months 211,000 Excellent
Repayment
3 16/04/2014 ILS 3,000,000 12 Months 320,000 Excellent
Repayment
4 14/15/2015 ILS 7,000,000 12Months 735,000 Excellent
Repayment
5 21/01/2016 ILS 9,000,000 12 Months 952,000 Excellent
Repayment
6 13/01/2017 ILS 11,000,000 12 Months 1,118,333 Excellent
Repayment
7 07/05/2018 BL 2,500,000 12 Months 264,583 Excellent
Repayment
8 10/05/2019 BL 5,000,000 12 Months 523,333 Excellent
Repayment
9 12/10/2019 BL 7,500,000 18 Months 527,916 Excellent
Repayment

7.3 Credit Reference Bureau Report

An enquiry to the Bureau done 06/01/2017 revealed a loan balance of Ug shs 3,500,000 in Pride.
However, the balance in Bankers Realm as at 06/01/2017 was Ug shs 952,000. Compuscan has not
updated the data to reflect the most recent payments. The new loan has been applied on the bureau.

8.0 FINANCIAL INFORMATION:

8. 1 STATEMENT OF FINANCIAL POSITION FOR MUHEME ANNET
AS AT 31/12/2014 31/12/2015 31-Dec-16
     
FIXED ASSETS

Tangible assets 45,000,000 49,000,000 55,000,000

TOTAL FIXED ASSETS 45,000,000 49,000,000 55,000,000
CURRENT ASSETS      
Stock 2,200,000 2,500,000 1,800,000
Cash at hand/bank
1,844,104 3,980,355 2,186,159
       
TOTAL CURRENT ASSETS 4,044,104 6,480,355 3,986,159

Loan application of Ug Shs 16,000,000 by Annet Muheme

Credit Officer: Saulo Mugwano 5
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TOTAL ASSETS 49,044,104 55,480,355 58,986,159

CURRENT LIABILITIES      
Creditors and Accruals    
Pride 1,000,000 2,916,666 750,000
Total current liabilities 1,000,000 2,916,666 750,000
Long term liabilities      
TOTAL LIABILITIES 1,000,000 2,916,666 750,000
       
FINANCED BY      
Proprietor's account 2,000,000 2,000,000 2,000,000
Retained profits 46,044,104
50,563,689 56,236,159
Total equity 48,044,104 52,563,689 58,236,159
TOTAL LIABILITIES AND EQUITY 49,044,104 55,480,355 58,986,159
 
 
FOR PERIOD ENDING 31/12/2014 31/12/2015 31-Dec-16

Turn-over 23,600,000 29,725,000 34,145,000

cost of sales  
GROSS PROFIT 23,600,000 29,725,000 34,145,000
Operating expenses 11,300,000 13,800,000 16,796,570
OPERATING PROFIT 12,300,000 15,925,000 17,348,430
       
proposed loan     15,000,000
 
LIQUIDITY RATIO 31/12/2014 31/12/2015 31-Dec-16

Current Ratio (CA/CL) 4.04

2.22 5.31
Quick Assets Ratio (CA-Stock)/CL 1.84
1.36 2.91
PROFITABILITY RATIOS      
Gross profit margin (GP/Turnover) 100.00
100.00 100.00
Net profit margin (operating profit/ 52.12
turnover) 53.57 50.81
GEARING RATIOS      
Total Debt Ratio (total debt+ proposed 0.02
loan/(total debt+net worth) 0.05 0.27

Debt Equity Ratio ((total debt + proposed 0.02

loan)/equity) 0.06 0.27
EFFICIENCY RATIO      

Debtors Days (Debtors/Turnover) X 365 -

Loan application of Ug Shs 16,000,000 by Annet Muheme 6

Credit Officer: Saulo Mugwano
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- -
Inventory turnover (inventory/purchases)
x365 #DIV/0! #DIV/0! #DIV/0!

9.0 Comments:
Non Current assets: The client’s fixed assets comprise of Kibanja developed with a residential house
at Kisaasi LC 1 Lugazi Municipality Buikwe District measuring approximately 6 acres. The increase in
the value of fixed assets is a result of appreciation in the value of land.

Current assets: These mainly comprise of stock of pigs and cash at hand/bank.

Income/Turnover: This includes the client’s income from the sale of piglets. The amount has been
increasing over time due to increased market share.

Expenses: These mainly consist of cost of feeds, drugs and wages.

Ratios:
Liquidity ratio: The ratios are high enough indicating that the client is still in a good liquidity position
and can therefore ably meet her short-term obligations with ease.

Profitability of the business: The profitability ratios are high enough and therefore any additional
investment in the farming project will result into more profits.

Gearing ratios: These ratios clearly indicate that the client is not heavily indebted. She may therefore
absorb more credit.

10.0 SECURITY ANALYSIS REPORT

 Kibanja at Kisasi LC1,Bulyanteete Lugazi Municipality Buikwe District measuring
approximately 6 acres developed with a residential house. It has an estimated Open Market
Value of Ug shs 55,000,000 and Forced Sale Value of Ug shs 30,000,000.The Kibanja
agreement is in the name of Muheme Annet the borrower.
 Personal guarantee of Muheme John(spouse) and Nanteza Janet business colleague

Total FSV of the collateral is Ug Shs 30,000,000.

11.0 SWOT ANALYSIS:

Strengths and opportunities:

 The client is a permanent employee of SCOUL which guarantees continuity in salary income.
 She has provided sufficient collateral for the loan
 Client has good credit history with Pride Lugazi branch.
 The client`s spouse is ready and willing to support her in loan repayment.
 She has ready market for the piglets

Weaknesses and Threats:

Loan application of Ug Shs 16,000,000 by Annet Muheme

Credit Officer: Saulo Mugwano 5
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 The client can be adversely affected in case of loss of employment. However she has other
diversified sources of income and support of the spouse to repay the loan.
 In case of an outbreak of swine fever, the pigs can be wiped out. The client ensures that the
pigs are regularly treated and in a healthy environment.

12.0. CONCLUSION AND RECOMMEDATIONS:

Basing on the foregoing analysis and most especially the client’s capacity to pay, credit history and
purpose of the loan, l recommend a loan of Ug shs 15,000,000 payable in 12 months for Ms. Muheme
Annet.
 

Loan application of Ug Shs 16,000,000 by Annet Muheme 6

Credit Officer: Saulo Mugwano