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Uganda > Micro Credit for Development and Transformation SACCO (MCDT SACCO)

Status Update, July 17, 2009:
MCDT SACCO is currently seeing higher than normal delinquency rates as a result of reporting problems. We are currently working with the organization on this and hope to have it resolved soon

MICRO CREDIT FOR DEVELOPMENT AND TRANSFORMATION SACCO (MCDT SACCO) was registered on the 29th January 2008. The institution was formerly known as Micro Credit Development Trust (MCDT) an indigenous development Non-Governmental Organization (NGO) founded in 1996 by a group of 19 professional Ugandans and SAVE THE CHILDREN, NORWAY (formerly REDD BARNA) under the inspiration of the Bangladesh Grameen Bank Model. The aim was to create an institution that would make positive changes to poor people’s lives through credit, delivered using the solidarity groups lending methodology and to facilitate savings mobilisation from her members. The Founder Member’s original plan was to start a financial institution that would eventually be owned by the beneficiaries.

The mission of MCDT SACCO is to provide financial services on a sustainable basis to the lower strata of the poor, especially women, for their economic and social development. The goal is to provide savings and credit related financial services to improve standards of living in the Member households. The primary objectives are to:
(i) improve income of member’s households;
(ii) improve voluntary savings among the beneficiaries;
(iii) have increased tangible assets by members in their households; and
(iv) increase members’ ability to make informed decisions about their lives.
Clientele
MCDT SACCO clients are the poor people in the urban, peri-urban and rural areas in which MCDT SACCO operates. The client must be aged between 18 and 68. The MFI operates deep in rural areas of Masaka and Tororo districts. There is one peri-urban branch of Luwero and an urban branch of Kampala operating in 4 of the five divisions where clients mainly live in slum dwellings. Currently, 100% of the clientele is women.

Financial Services Delivery
MCDT SACCO adopts the Grameen Bank approach of credit delivery via the solidarity groups lending methodology. Members in a group of 5 co-guarantee each other as security for MCDT SACCO loans.

Specific Activities
Presently, MCDT SACCO is offering two major loan products namely a general loan and a school fees loan. There is compulsory savings collection tied to the general loan. Pre-disbursement training covering basic literacy skills like name writing and awareness of MCDT SACCO policies and procedures, is offered as a prerequisite to access credit.