Somotha Microfinance

How to join

People are invited to register to join to be part of the group that has a same goal of finishing the debts quicker in order to be debt free. In order to join a Debt-Free Solution, a registration fee of R250.00 is required (not refundable). People MUST submit their credit reports before registering.Once the registration process is completed, the member pays 50% of the smallest debt from the credit report then after a minimum of R500.00 is payable every month.The money is contributed towards one account.The money contributed by members is used to settle the debts each and every month.

How it works

A minimum amount of R500.00 is contributed by each member each month up until all the debts are paid off. Note, members do continue to pay even if their debts are paid off if they still owes the members account. Members can pay more if the affordability allows and that will give them more chances to finish their debts quicker. Each member pays R15.00 (service fee) every month up until the member leaves the programme but the bank changes are shared amongst members.

Payment Methodology

All members’ debts are grouped together.
Debts are ranked in an ascending order.
The least debt gets settled first. In a case one member contributes the amount that’s more than the rest then automatically the least debt of that particular member is settled first.The arrangements of payments are determined by a debt amount and an amount the member has contributed.