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Loan Conditions of 
Micro-Finance Institutions

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(a)  General Information

Year of Establishment

March 1999

Legal Status

ASSEER Micro Finance 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 and Southern Nations and Nationalities Peoples’ Regional State (SNNPRS) – Enemor.

Future Expansion Plan

ASSEER S.C. intends to increase its outreach in the two regions indicated above.

Total Number of Woredas Covered so far

Three Woredas in Addis Ababa City Administration and one in SNNPRS (Enemor-with 25 Peasants Association).

Total Number of Branches Opened so far

Four

Total Number of Clients served so far

4234, with urban clients of 1,215 and 3,019 rural.

Gender Sensitivity

Male clients = 5%, Female Clients = 95%

(b)  Loan Services/Products

• Petty Trade Loan;

• Service Loan;

•  Animal husbandry Loan.

Annual Lending Rate

12% with 4% service charge.

Loan Size

Maximum loan size for all types of loans is Birr 1,000.

Loan Term

Maximum Loan term = 12 months

Loan Eligibility Criteria

• Potential client are expected to meet the following criteria:

• priority is given to poor but active women and men engaged in income

• generating activities;

• clients must be willing to organize themselves into groups and abide by group

• regulations;

• must be physically capable;

• must have good attitude, behavior and free of unethical undertakings;

Type of Collateral Needed

Group Guarantee.

Some of the economic activities financed so far

• Different types of trade activities;

• Animal husbandry;

• Different types of service activities.

Grace Period

No Grace period.

Time needed to process and get loan

15 to 20 days.

Business Plan Presentation

Business plan, with the following major items, should be presented by borrowers:

• Proposed area of investment;

• Amount of money needed for the selected activity;

• Repayment schedule.

Loan Application Format

Borrowers are required to fill an application format with the following contents:

• Name and address of the client;

• Proposed area of investment;

• Loan amount;

• repayment date;

• Signature.

Target Clients for Loans

• Urban and rural households

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

Currently, no loan is being provided to new business start-ups at ASSEER.

Frequency of Revising Institutional Financial Policies

Once in a year.

(c) Savings Products

(a)  Other Services

• Awareness creation training is provided to clients.

Service Out-let

Services of the Institution can be accessed through Farmers’ Association and branch/sub-branch offices in rural areas and through Woreda, Kebele and Branch/sub-branch offices in urban areas.

New products to be introduced during the coming 3-5 years

Address

P.O.Box: 5683, Addis Ababa, Ethiopia

Telephone: +251-1-431134/35, Mob 09-207120

Fax: +251-1-431134

E-mail : wondimu@telecom.net.et

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