In the national development process, women play a critical role. However, despite government and development agency efforts. They still lack access to technical skills and credit. Hence, keeping them outside of the formal sector. But now Ghana women have full access to funds because of the Ghana women’s fund. Also, they can use this for a variety of purposes, ranging from business, to skills development, to personal needs. In this article, we will look at details about Ghana’s women’s fund and their loan products.
About Ghana women’s fund
This is an institution that was established in 2001 as a soft lending window for women in Ghana. Women’s organizations and microcredit institutions are the key recipients of this fund’s wholesale credit for loaning to women at the grass roots. Aiming at fostering micro enterprises that can receive credit from any bank on terms. They proposed the creation of a financial institution that would provide support for the specific financial needs of women in Africa at all levels.
The three key focus of Ghana women’s fund include:
- Provide Ghanaian women entrepreneurs with training in bookkeeping and business management information material on business, finance, and economics.
- Supporting the income-generating efforts of poor women, especially in rural areas or slums of urban centers, by extending credit.
- Providing fund management and banking services, as well as banking services for non-banks.
What are the loan products Ghana women’s fund offer?
They offer various loan services to Ghanaian women to help them grow their business, skills, and other developmental needs. Some loans they offer include:
- Wholesale loans: They provide loans to rural and community banks, reputable MFIs with a Bank of Ghana licence. Basically, this is a program to provide loans to women at competitive rates.
- Retail loans: Women’s Fund of Ghana offers credit to salaried workers to pay school fees, bills, and other purposes and entrepreneurs for expanding their businesses. Several loan products are available, each of which is tailored to meet the specific requirements of its customers.
- Organised group loans: They also offer loans to organized women professional associations/institution-based associations in private companies. The same applies to ministries, departments, and agencies.
- SME support loans: SMEs and sole proprietors can use this loan to expand their existing businesses with a focus on export, Agro-processing, agribusiness, etc.
- General micro loans: Among their clients are small business owners such as petty traders, vendors of food, fishmongers, hairdressers and sellers of groceries and tableware. They can improve their economic livelihood since they are mainly in informal settlements and low-income areas. They do so by supplying them with affordable working capital loans.
Requirements for accessing this loan/fund
As a Ghanaian woman, to be eligible for the Ghana women fund you must meet these criteria:
- Letter of application
- Permanent business and resident location
- Current account
- Registration of business document
- Current bank statement
- Reputable guarantor
- Collateral
How to apply for Ghana women’s fund
Ghana women’s fund has a very simple and quick loan application process which includes:
- Go to their website using your laptop or smartphone
- On the home page, click on “loan application”
- Fill in the form accurately and honestly.
- Submit and wait for feedback
Effects of Ghana women’s fund
Ghana women fund loan facilities is of benefit to 7 rural and community banks in Ghana.
Some effects are:
- It serves to empower women by enabling them to take part in the economy.
- Also, it promotes the wellbeing of households
- Low-income households can establish and expand their personal businesses with the help of this program.
- The women gain more self-confidence. Their prominence in society is such that they hold many prominent positions.
- However, it encourages saving, which helps with school fees, rent, and healthcare costs.
- With the loan, women are better equipped to compete, and those who were previously underprivileged can now access funding. Thus, increasing their sales and income.
- Women in Ghana benefit from this fund, which provides them with entrepreneurial skills. Therefore, they now enjoy financial security and have stabilized their business capital.
Conclusion
Inadequate access to formal credit is one major obstacle to women’s economic empowerment. It is in this context that the Economic Commission adopted a resolution on women and their access to resources in the 1990s. Hence, they started moves towards the establishment of an African Bank for women. Ghana, however, established a Ghana women’s fund which helps the growth of businesses. You can use the loan for business start-up, student fees and other personal needs. Also, it comes with competitive interest which helps low-income individuals.