Our Loan Scheme Journey

Building Capital. Expanding Access. Strengthening Family.

Since operations officially began on January 15, 2022, community lending has remained one of the strongest pillars of Neng & Kembongngei’s Njangi Community. What started as a small, carefully protected lending initiative has evolved into a structured, affordable financial support system serving members across multiple needs.

Why the Loan Scheme Was Introduced

The loan program was created to:

  • Provide fast access to emergency funds
  • Support small businesses and income-generating activities
  • Reduce reliance on high-interest informal lenders
  • Grow a shared treasury to benefit all members

From the beginning, lending was governed by clear bylaws, surety requirements, and transparent reporting to ensure accountability and long-term sustainability.

Phase One (2022): Capital Protection & Foundation

When lending first began in February 2022, using benefactor-supported funds, the priority was to protect limited startup capital while building discipline and trust.

Initial Interest Structure:
  • 5% per month for members who had not yet benefited from the Njangi rotation
  • 10% per month for members who had already benefited

These higher rates were temporary and strategic. They allowed the community to quickly strengthen its treasury and stabilize the loan program.

2022 Results:

  • Interest generated: 224,500 FCFA
  • Year-end treasury balance: 648,000 FCFA

The first year proved that the system was viable and sustainable.

Phase Two (2023): Structured Reform & Fairness

As trust grew and capital expanded, the community reviewed its interest model through open discussions and stakeholder meetings.

After evaluating several proposals, members agreed on a standardized 4% monthly interest rate for all loans, creating a fair and transparent structure.

Additional improvements included:

  • A loan cap of 150,000 FCFA per member
  • Mandatory surety for all loans
  • A maximum of two rollovers
  • 5% interest applied only to rolled-over loans
  • Incentives for prompt repayment

2023 Performance:

  • Loans disbursed: 1,795,000 FCFA
  • Interest earned: 251,110 FCFA
  • Treasury surpassed 1,000,000 FCFA

This phase marked the transition from startup protection to a structured community microfinance model.

Phase Three (2024–Present): Support-Focused Lending

With a stronger treasury and a consistent repayment culture, the community shifted toward highly affordable interest rates to prioritize member support.

Current Interest Structure:
  • 1% for business loans
  • 1.5% for emergency loans

This shift reflects financial maturity. The program now relies on participation and discipline rather than high rates to sustain growth.

Growth Highlights:
  • 2024 loans disbursed: 3,810,000 FCFA
  • 2025 loans disbursed: 3,885,750 FCFA
  • Treasury balance (2025): 1,762,977 FCFA

Loan volume more than doubled between 2023 and 2024, demonstrating rising trust and increased financial inclusion.

Cumulative Impact (2022–2025)
  • Total loans issued: 9,490,750 FCFA
  • Total interest generated: 771,515 FCFA
  • Treasury growth: from 292,500 FCFA to 1,762,977 FCFA

Over four years, the treasury has grown more than sixfold, while interest rates have steadily decreased — a strong indicator of financial stability and member-centered governance.

Our Commitment

Our loan scheme has evolved from protective high rates (5%–10%) to a fair 4% structure, and now to a highly supportive 1%–1.5% model.

This journey reflects:

  • Growing financial strength
  • Transparent decision-making
  • Collective responsibility
  • A commitment to long-term community empowerment

What began as a modest lending initiative is now a sustainable, disciplined, and inclusive financial support system serving families, businesses, and future generations.

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