BACKGROUND
The applicant is the owner of a wholesale / a retail provisions shop at Mallam Atta. She has been banking with us since February, 2017 and her account operations have been favourable. This is the fourth credit facility she is requesting from us and we should lend to her if possible. Her previous loans were completed as expected and a search on XDS data indicates that she is not indebted to other financial institutions.

REQUEST
The purpose of the facility is to complete a project located at her Oyibi residence. She intends to stock her goods in it upon completion. She is requesting for an amount of GH¢ 7,000.00 and she is willing to service the facility within eight months.

BUSINESS
Although she is at a location where the market is moderately competitive, she has been able to dominate the market and this enables her to generate enough income from the business. Her Monthlymonthly sales isare between GH¢ 9,000.00 to GH¢ 12,000.00. As a result, she makes between GH¢ 3,000.00 to GH¢ 4,000.00 as her monthly income. The monthly income is sufficient to cover the loan repayment amount.

SECURITY
Stock of goods valued at GH¢40,000.00 as of 18th October, 2019. The request is guaranteed by Mr. Michael Tetteh (MC).

PRICING
The interest rate will be 4% per month, based on longstanding relationship, credit worthiness and the status of the guarantor.

REPAYMENT
Confirmation from her accounts statement indicates that she makes a daily savings of GH¢ 100.00, which is approximately GH¢ 2,000.00 per month. This is a good indication that she can pay the required monthly installment amount of GH¢ 1,155.00 for eight months.

RECOMMENDATION
Upon thoroughly analyzing the applicant, I recommend GH¢ 7,000.00 for the applicant.

Thank you,