Loan Product

We provide a variety of loan products including Micro enterprise loan, Agricultural loan, Individual loan, Consumption loan, Agricultural business loan and Construction loan

1. Microenterprise loans:

This is a loan primarily offered to economically active low-income people operating Microenterprise activities. The loan product will be provided based on widely accepted group guarantee methodology both in solidarity group and community bank.

Clients qualifying for microenterprise loan are expected to undertake actual business activities in trade (e.g. selling goods, keeping shops, groceries etc), service (e.g. transportation, restaurant, beauty salons, garage and maintenance etc), or production (e.g. metal and wood workshops, shoe making, bakery, poulty,diary production etc) that would have a steady cash flow and do not directly depend on seasonal harvest or production cycle.

2. Agricultural loan:

The Agricultural loan is a loan to be provided to smallholder farmers engaged in a typical agricultural or farming activity that are dependent on rains and directly linked or related to seasonal planting and harvest cycle.

On-farming activities are defined and include such activities as growing various crops for which clients need loans to buy seeds, fertilizers, pesticides and farming implements including oxen are considered under this category.

In due consideration of the fact that such activities do not have a steady cash flow, repayment of loans will be made in a lump sum payment at the end of the loan term while interest due will be paid on a monthly basis.

3. Individual Loan:

Individual loan is a loan product offered to those successful individual business owners with a relatively reasonable level of asset holding and who would not prefer to be on a group methodology guarantee approach. The purpose of the loan is mostly for working capital or expansion of an already existing business.

This category of clients are assumed to have the capacity to provide the property collateral required for the loan and the size of loan required would be larger compared to other types of loan.

4. Consumption Loan:

This is a loan specifically designed to meet the lump sum cash need of low salaried individuals either for consumption or smoothening seasonal cash needs.

The loan is provided through individual lending methodology and guaranteed by salaried third person whose a third of his/her salary is at least equivalent to one time instalment. The loan is expected to be paid in an equal amount of instalments distributed over the loan period.

5. Agricultural Business Loan:

This is a loan product specifically offered to meet the needs of clients that are running farming business that do not necessarily depend on weather but have some level of seasonality and intermittent cash flow.

The loan product is provided through group lending methodology to a group of clients. This category of clients are assumed to engaging in farming activities such as irrigated horticulture, cattle fattening, apiculture etc. with an intermittent cash flow pattern.

In due consideration of the intermittent cash flow patterns, clients are exerted to repay the loan a monthly interest payment and quarterly principal payment.

6. Construction Loan

This is a loan product aimed to support building construction reached at finishing phases above 75%. The loan modality is individual based.