Investment Savings Plan (ISP):
This is based on the regular deposit system observed in the informal Rotating Savings and Credit Associations (ROSCAS). The product is meant to mobilize savings in order to obtain credit dedicated to an investment or capital purchase.
The conditions required to open a plan are;
- Belong to an investment club
- Deposit at least 20% of the investment amount
- Regularly deposit a fixed amount according to a chosen periodicity viz; daily, weekly and monthly.
- Create an investment club of at least 5 members (the club must block at least 30% of the credit amount into a special account)
- After meeting the minimum deposit amount the customer can be granted a loan in order to make the investment or the purchase.
- Interest on the savings will be 5% per year while the loan will attract the usual interest and fees.