Types of Loans offered by Encot:
1. Micro Enterprise Group Loans
2. Agro Production Group Loans
3. Individual Small & Medium Enterprises (SME) Loans
4. Home Improvement Loans
5. SME Loans
6. Water and Sanitation Loan
7. Farm Asset Loan
8. Business Asset Loan
9 Agro Production
10. Agro Produce Trade Loan
11. School Fees Loan
12. Personal Development Loans
13. Sugar Cane Harvest Loan
14. VSLA Loans
15. Emergency Loans
16. Group Salary Loans
ENCOT Microfinance Limited uses an appropriately developed group methodologies in provision of micro-credit to its constituents. This methodology is uniquely distinguished using the following Principles:
Principles used by ENCOT Microfinance Limited in its lending program:
a) We promote credit as a right.
b) Our mission is to help the poor families to help themselves to overcome poverty. Thus we target the poor, most especially poor women.
c) Our lending is based on TRUST and not on traditional collateral, or legally enforceable contracts/procedures or system.
d) We offer credit for creating self-employment through support to income-generating activities as opposed to consumption.
e) Our credit program is initiated as a response to challenge posed by conventional banking which reject the poor by classifying them to be "not creditworthy".
f) We provide service at the door-step of the poor based on the principle that the people should not go to the bank, instead the bank should go to the people.
g) Priority in issuance of credit is given to active poor working as a group.
h) Loans can be received in a continuous sequence (cycles). New loan becomes available to a borrower if his/her previous loan is repaid.
i) All loans can to be paid back in installments (weekly, bi-weekly and monthly).
j) Simultaneously more than one loan can be received by a borrower e.g. micro-enterprise loan, solar loan, agro-equipment loan, , school fees, water and sanitation loan etc.
k) All our loans come with an obligatory life and credit insurance
l) We give high priority on building social capital. This is promoted through formation of groups and centers, developing leadership quality through annual election of group and centre leaders.
m) Our credit delivery program is based on the premise that the poor have skills which remain unutilized and/or under-utilized. It is definitely not the lack of skills which make poor people poor. We believe that the poverty is not created by the poor; it is created by the institutions and policies which surround them.