Economic Activity Loans
For non-Fast Track clients, these will be available after completion of their 3rd 2000L loan. Just like the Fast Track loans, we review credit history, require a business proposal and strongly recommend BPC class attendance. The first EAL will be 2500L, after which the client will be able to reapply with a request for a loan of equal or greater value. So, for instance, successfully completing a 2500L loan will make a client eligible for up to 4000L, then, upon completing that one, eligible for up to 5000L, which is the end of EAL’s. Client will have to justify their loan amount request, with cost estimates of their potential purchases.
In the event that a client defaults, they are immediately removed from the EAL program and must re-apply with a new business proposal. They may continue with the maximum personal loan if they decide to remain outside of the EAL program.
The new Economic Activity loans cap at 5000L, as La Ceiba is not yet equipped to deal with higher risk loans. We can re-evaluate whether to re-introduce higher loans when we are profitable. Also, since these are business loans they must choose a maturity schedule of either 6 months or 1 year. Since these Loans should be going towards a small business, the time period can be more rigid. This also helps keep our clients on a schedule and thinking about multiple aspects of their financial status.