ZCGS GUARANTEE APPLICATION FORM/INFORMATION SCHEDULE

APPLICATION PROCEDURE

The following are required by Zambia Credit Guarantee Scheme (ZCGS) for processing
guarantee coverage for MSME credit facilities offered by the Participating Financial
Institution (PFI):

1. A completed Guarantee Application Form/Information Schedule, in the format

provided overleaf;
2. A copy of the approved credit application/assessment paper of the MSME
customer. This should include financial information about the applicant.
3. Business Facility Letter/document outlining conditions of approval including the
collateral details. This may be an addendum or attachment to the approved
credit application/assessment paper.

The guaranteed party will provide to ZCGS the following additional documents for
the qualifying borrowers;

1. If there are any conditions precedent to be fulfilled prior to the disbursement,

evidence that these have been met, in the form of a written confirmation from
the guaranteed party.

Upon receipt of the relevant documentation, ZCGS will confirm in writing that guarantee
cover for the qualifying borrowers is now effective, after which the facilities can be
disbursed to the MSME. ZCGS will communicate to the guaranteed party whether a
borrower qualifies for coverage or not within 72 hours of receipt of the Guarantee
coverage application pack. Upon disbursement, a repayment schedule is to be provided
to ZCGS by the PFI.

A Business Coach shall be assigned, where applicable, to the Borrower for post-
disbursal monitoring of the credit facility as well as capacity building and coaching of
the Borrower.
CUSTOMER INFORMATION SCHEDULE
PORTFOLIO GUARANTEE No: (Guarantee agreement
number – will be quoted in the agreement document
and provided to the Partner Financial Institution).

TRANSACTION NUMBER: (Sequence No. ref for MSME 1

customer application)

NAME OF BORROWER: Disght Finance Limited

(Beneficiary Name, or the name of the loan recipient or
business)

LEGAL STATUS (Business registration status e.g. Limited Limited Company

company, sole trader, partnership etc)

ADDRESS OF BORROWER: (Official business address Stand no 4183, House no 6, Lukasu

including physical location) Road, Rhodespark Lusaka.

SECTOR: (Indicate which sector of the economy client Micro Finance

belongs e.g. Manufacturing, Wholesale & Retail Trade,
Agriculture, Mining etc)

LOCATION: (Geographical location of the business i.e. Lusaka

city, town)

CREDIT TYPE: (What type of credit facility it is. Short Medium Term loan
Term Loan, Invoice Discounting, etc. This may be
dependent on the Bank’s credit products)

CURRENCY: (The currency in which the loan has been ZMW

availed).

TRANSACTION AMOUNT: (Total credit facility amount ZMW5,000,000

of Principal only)

INTEREST: i.e. Annual interest rate charged to the client. MPC 10%+Margin 20.50%=30.50%
Indicate whether floating or fixed. If the interest is tied
to the BOZ Monetary Policy rate, it should be indicated
as well as the margin charged e.g. ’25% (Bank of
Zambia Monetary Policy Rate of 9% plus a margin of
16%’).

OTHER BANK CHARGES: (Any other fees charged to the 2% arrangement fees
client e.g. arrangement fees, management fees etc)

PURPOSE: What the loan will be used for (eg.: working The ZMW5,000, 000 term loan facility
capital for importation of hardware and plumbing goods will enable the customer to pay off
for resale, purchase of equipment for dairy processing, K3.4mn loan facility with Indo Zambia
etc. Purpose needs to be detailed and specific.) Bank and working capital needs.

TENOR: (The period or duration for which the credit 36 months

facility amount is sanctioned and in which it is expected
to be paid in full).

COLLATERAL DESCRIPTION: a) Third Party Legal Mortgage of

(Full description of the type of collateral which has been
ZMW5,000,000 over S/D No. 1086 of
offered to secure the credit facility such as Landed
Property, cash cover, Floating Debenture over stock, Stand No. 8536, Kabwata Site and
Agricultural Charge, Fixed Charge over assets etc).
Service Area, Lusaka Province,
registered INO Pelaja Mukuka
Chongo of NRC#446861/11/1 with a
market value of ZMW770,000 and a
Forced Sale Value (FSV) of
ZMW540,000 as per valuation dated
18th August 2023 by Mak Associates.

b) Third Party Legal Mortgage of

ZMW5,000,000 over Farm No.
377a/45/30/CL/B/1, Kudu Road,
Kabulonga, Lusaka, registered INO
Mukhala Miti Maria
NRC#439809/11/1 with a market
value of ZMW2,000,000 and a Forced
Sale Value (FSV) of ZMW1,500,000 as
per valuation dated 15th August 2023
by Fairworld Properties Limited.

c) Third Party Legal Mortgage of

 ZMW5,000,000 over remaining
extent of Lot No. 27135/M, Silverest,
Chongwe, Lusaka Province registered
INO Beaton Zuka Kaluba
NRC#224269/51/1 with a market
value of ZMW4,000,000 and a Forced
Sale Value (FSV) of ZMW3,000,000 as
per valuation dated 15th August 2023
by Fairworld Properties Limited.

Property to be insured at borrowers cost

with NATSAVE noted as first loss payee.

Floating charge over the borrower’s loan

book amounting to ZMW 9,517,472.62
as of 6th April 2023. (Discounted at 20%)
valued at K1,903,494

COLLATERAL VALUE: (Value of the collateral offered)  S/D No. 1086 of Stand No. 8536,
Kabwata Site and Service Area,
Lusaka Province, registered INO
Pelaja Mukuka Chongo of
NRC#446861/11/1 with a market
value of ZMW770,000 and a
Forced Sale Value (FSV) of
ZMW540,000
 Farm No. 377a/45/30/CL/B/1,
Kudu Road, Kabulonga, Lusaka,
registered INO Mukhala Miti
Maria NRC#439809/11/1 with a
market value of ZMW2,000,000
and a Forced Sale Value (FSV) of
ZMW1,500,000
 remaining extent of Lot No.
27135/M, Silverest, Chongwe,
Lusaka Province registered INO
Beaton Zuka Kaluba
NRC#224269/51/1 with a market
value of ZMW4,000,000 and a
Forced Sale Value (FSV) of
ZMW3,000,000
 CREDIT REFERENCE BUREAU CHECK (Listed/not listed as Not listed as delinquent
delinquent):
NUMBER OF EMPLOYEES: (How many employees are 9
employed by the applicant at the time of applying for
the credit facility).

TOTAL ASSETS: (What is the asset size of the ZMW6,913,920

business?)

ANNUAL REVENUE: (What is the total annual revenue ZMW3,359,285

for the business)

FIRST TIME BORROWER? (YES/NO) (Is MSME client YES

borrowing for the first time from the PFI?)

WOMAN OWNED BUSINESS? (YES/NO) Does a woman NO

own 51% or more of the business?

YOUTH OWNED BUSINESS? (YES/NO) Is the business NO

owner’s age 35 and below?

ANY EVIDENCE OF IMPACT ON ECONOMIC GROWTH, The ZMW5,000, 000 term loan facility
CREATION OF EMPLOYMENT AND/OR POVERTY will enable the customer to pay off
REDUCTION K3.4mn loan facility with Indo Zambia
Bank and working capital needs thus
increasing their loan book via providing
financing to Zambian households and
msmes.

DECLARATION

We declare that, to the best of our knowledge and belief, the information provided
above is true and correct. We understand and accept that, in the event that the above
information is a fraudulent misrepresentation in whole or in part, the guarantee
coverage will be invalidated, and any claims arising therefrom will not be honored.

Authorized Signatory 1 Authorized Signatory 2

NAME: …………………………………………………… ………………………………………………..

SIGNATURE: ………………………………………… ………………………………………………..

DATE: ………………………………………………… ………………………………………………..