Wholesale Refinancing Loans
This is the main SFFL product providing loans to MSME financial institutions for typically 2 to 3 years at an interest rate of Bank of Ghana prime rate plus a margin of 1-2%, repayable on an annuity basis with a negotiable moratorium of 3-6 months. The loan repayments are monthly by direct debit payment. The funding is available to finance either a microfinance portfolio or SME term credits matched to the term of the SFFL loan.
SFFL will primarily only consider regulated financial institutions with acceptable resources and performance judged satisfactory to meet the SFFL repayment terms.
- Lending to any one participating financial institution will be in the target range GH¢100,000 to GH¢300,000 with an absolute maximum of GH¢500,000.
- The SFFL loan should NOT exceed more than 5% - 10% of the total assets of the applicant financial institution.
- The term of individual credits financed by the institution are to be matched to SFFL lending. For micro finance lending the maximum term should be 2 years. SME lending can be longer than 2 years.
- Applicant financial institutions are expected to meet the following criteria:
- Total assets GH¢ 1 million - 12 million
- Credit Portfolio size GH¢ 500,000 to GH¢ 6 million
Risk Sharing Products
A risk sharing product along the lines of a loan portfolio guarantee is to be developed by SFFL on the basis of guaranteeing either a portion of an individual financial institution's MSME portfolio or providing a guarantee to a commercial bank to support inter bank lending of 2-3 years for the purpose of financing MSMEs.
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