Chadian microfinance: small loans, prior savings and guarantees
In Chad, microcredit is offered by some sixty COBAC-licensed microfinance institutions, including the UCEC-MK network, Finadev Tchad and Express Union Tchad, which lend small amounts to traders, craftspeople and farmers, often after a period of prior saving.
A sector of 62 licensed institutions
In 2021, Chad had 62 microfinance institutions, with combined total assets of about 30 billion CFA francs in 2019. Their presence remains concentrated in N'Djamena and the south, leaving vast areas of the north poorly served.
The UCEC-MK cooperative network
UCEC-MK brings together around 55 cooperative branches, mostly located in rural areas. Members deposit their savings there and then gain access to loans whose size often depends on the balance built up and on how long they have belonged.
Finadev Tchad and Express Union Tchad
Finadev Tchad is one of the main second-category institutions. Express Union Tchad, licensed in 2006, reports 38 branches in 18 of the 23 provinces and obtained IFC funding in 2023 to expand its lending.
Categories of MFIs under CEMAC rules
CEMAC regulations distinguish three types of institution: first-category ones, which work only with their own members, second-category ones, open to the general public, and third-category ones, which grant credit without collecting any savings from customers.
Prior savings and pledged deposits
Before a first loan, many Chadian MFIs ask clients to save for a few months. Part of these savings is then frozen as security, which lowers the institution's risk but raises the real cost of the loan for the borrower.
Women's groups and joint guarantees
Women's groups and traders' associations in N'Djamena often borrow together. Each member guarantees the others, and regular meetings allow collective follow-up, a method suited to borrowers who have neither a land title nor a domiciled salary.
Financing a farming season in the south
In Mayo-Kebbi, Logone or Moyen-Chari, rural branches finance seeds, fertiliser and small livestock. Repayments are timed to match the harvest, as the guide to the farmer loan in Chad explains in more detail.
The cost of microcredit compared with a bank
Microfinance rates are generally higher than bank rates, because loans are small, short and closely monitored. The 10.89% average bank APR published by the BEAC for early 2026 is therefore only a distant benchmark for borrowers.
Repaying through Airtel Money or Moov Money
Some institutions accept repayments via Airtel Money or Moov Money, which saves long journeys to the branch. Transfer fees nevertheless add to the cost of each instalment for the borrower over the life of the loan.
An alternative to tontines and informal lenders
Compared with moneylenders in the markets of N'Djamena or Moundou, licensed microfinance offers a written contract, a known rate and an identified branch to complain to. It complements the tontines described on the page about peer-to-peer loans in Chad.
Comparing with Cameroonian MFIs
Neighbouring Cameroon has a larger microfinance sector, subject to the same COBAC rules. The guide to microcredit in Cameroon makes it possible to compare local practices on compulsory savings and on group lending.
MFI closures and protecting your savings
Several microfinance institutions in the CEMAC have already been placed under provisional administration or liquidated. Checking the licence and the soundness of the branch before freezing your guarantee savings there remains an important precaution.
The route to a microloan in Chad
- Find a COBAC-licensed microfinance institution with a branch or cooperative office nearby.
- Join or open an account, then save regularly for the required period.
- Present your business to the loan officer, who often visits the shop or farm.
- Provide the guarantees required: frozen savings, a joint group guarantee or a personal guarantor.
- Sign the contract, receive the funds and stick to the agreed repayment schedule.
What a Chadian microloan costs
| Item | Usual practice | Parameters |
|---|---|---|
| Interest rate | Higher than bank rates | Term, amount, institution |
| Frozen savings | Share of the loan held as security | MFI policy |
| Application fees | Deducted at disbursement | Loan amount |
| Cooperative membership | Member shares to purchase | Cooperative network |
| Mobile money fees | Airtel Money or Moov Money price list | Amount repaid |
Documents to give a microfinance institution in Chad
- National identity card or passport
- Passport photos
- Certificate of residence from the neighbourhood or canton chief
- Description of the activity and estimated income
- Joint guarantee commitment for a group loan
- Trading licence or RCCM for a registered business
Microcredit traps in Chad
- Borrowing from several MFIs at once to repay one loan with another, a common spiral among small traders.
- Entrusting savings to an unlicensed outfit that calls itself a cooperative and promises fast loans.
- Agreeing to a joint guarantee without knowing the other group members, then having to repay in their place.
- Using a business loan for a family expense, which leaves the business without the cash needed to repay.
Questions about Chadian microfinance
How much can you borrow through microcredit in Chad?
First loans are for small amounts, adjusted to the activity and the savings built up. Amounts then rise with each successful repayment. Every institution sets its own ceilings according to its category and the funds it has available.
Do you need a land title for a microloan in Chad?
No, in most cases. Chadian MFIs rely on frozen savings, joint guarantees and their knowledge of the client. For larger amounts, however, they may ask for an asset as security or a salaried guarantor.
Are Chadian microfinance institutions supervised?
Yes, COBAC licenses and supervises microfinance institutions across the CEMAC, with support from the Ministry of Finance at national level. An unlicensed institution may not legally collect savings or lend to the public.
Is Islamic microcredit available in Chad?
Products based on murabaha or profit-sharing exist in the region, but since the 2022 COBAC regulation they require specific authorisation. It is advisable to ask the institution for proof that it holds this authorisation.