Home

Addis Credit 
and Savings Institution

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Year of Establishment 

27^th January 2000

Legal Status

Addis Credit and Saving S.C. was legally registered by the National Bank of Ethiopia, according to Proclamation No.40/1996.

Current Operational Area (s)

Addis Ababa City Administration

Future Expansion Plan

Addis Credit and Saving S.C. is a region-based micro finance institution established to serve people residing in the City of Addis Ababa.

Total Number of Woredas Covered so far

All sub-cities

Total Number of Branches Opened so far 

10 branches

Total Number of Clients served so far 

30,000 (All urban)

Gender Sensitivity

Male clients = 18%, Female Clients = 82%

(b)  Loan Services/Products

• Individual Loan

• Cooperative Loan

• Loan to Community-Based Organizations

Annual Lending Rate

6.5% with an additional annual service charge of 3% for term loans

10% with an additional annual service charge of 3% for installment loans.

Loan Size

Loan Term

Maximum Loan term   = 24 months

Minimum Loan term    =   7 months

Loan Eligibility Criteria

Potential clients are expected to meet the following criteria:

• Permanent residence in the City of Addis Ababa;

• Unemployed youth and women;

• Willingness and full commitment to be engaged in income generating activities;

• Willingness to be organized into credit group and take loans through group

• collateral;

• He/she should be above 18 years of age (working age);  

Type of Collateral Needed

Group Collateral

Some of the economic activities financed so far

Buying and selling activities such as:

• Grain and cereal selling

• Street vending

• Diary product selling

• Poultry products selling

• Selling of ready made and cultural cloth, shoes, plastic sheets, household utensil,

• traditional food and drinks, Newspapers, books and lottery vending, etc.

• Firewood selling

• Spice selling

• Selling of electronic equipment

• And many others

Services

• Hair dressing/beauty saloons and barberry

• Tailoring

• Small restaurants

• Plumbing and maintenance of electronic equipment and shoes, cloth washing,

• mechanics, cart transport, etc.

Handicraft and Production Activities

• Embroidery

• Wood and metal works

• Weaving

• Leather and Bamboo craft

• Gold and silversmithing

• Paper bag production

• Candle production

• Stove making, etc

Grace Period

There is a 30-day grace period for any one loan.

Time needed to process and get loan

30 days

Business Plan Presentation

Addis Credit and Savings S.C. requests borrowers to fill out application format that can also serve as business plan.

Loan Application Format

The borrower is expected to fill out an application form (Form-a- 003) with the following contents:

• Name of the borrower

• Address of the Borrower (Woreda, Kebele, Ho. No.);

• Name of business that the borrower wants to engage himself/herself;

• Amount of loan requested by the borrower;

• List and cost of items to be purchased by the borrower with the loan fund he/she

•  requested; 

• Average monthly profit expected to be generated from the business the loan is

• asked for;

• List of problems that the borrower expects to face while running his/her business;

• Official signature of the applicant and date of signature;

• Amount of loan approved by the group members;

• Group members’ comment and approval of the chairperson;

• Comment and decision by the Credit and Saving Committee of the Kebele

• Administration;

• Amount of loan approved by the branch manager/ credit officer of the concerned

• Woreda;

Target Clients for Loans

• Unemployed youth and women;

• Legally registered Cooperatives;

• Community-based organizations such as ‘Iddirs’. The Iddir selects the poorest

• among its members;

• New business start-ups such as fresh graduates of high school, colleges or even

• universities shall receive the services provided that they can engage themselves in income generating activities and want to take the loan on the basis of group collateral. Such borrowers shall be recruited or selected by the credit and saving committee of their respective local administration (Kebele).

Willingness to lend to new business start-ups such as high school dropouts, college graduates and similar groups

The unemployed and new business start-ups are the ultimate target clients of the Institution.

Frequency of Revising Institutional Financial Policies  Not available

(c) Savings Products

(d)  Other Services

• Business Management Training is provided to clients provided that external fund is secured from donors;

Service Out-let

Service is accessed by clients through the Credit and Saving Committee of the Kebele Administrations.

Address  

P.O.Box : 1074, Addis Ababa, Ethiopia

Telephone : +251-1-572720, 1-111512

E-mail : adcsi@telecom.net.et

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