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Benishangui-Gumuz 
Micro Finance Institution

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(a)   General Information

Year of Establishment

9^th January 2001

Legal Status

Benishangul-Gumuz Micro Finance Institution S.Co. is a legally registered micro finance institution according to Proclamation No.40/1996 of the National Bank of Ethiopia.

Current Operational Area (s)

Benishangul-Gumuz National Regional State

Zones:

• Assosa

• Metekel

• Kamashi

Woredas:

• Assosa

• Bambashi

• Pawe;

• Mandura

• Dangur

• Debatie

• Bullen

• Wombera

• Sherkole

• Kamashi.

Future Expansion Plan

The Institution has a plan to serve more clients in the Regional State.

Total Number of Woredas Covered so far

Ten Woredas

Total Number of Branches Opened so far

Three

Total Number of Clients served so far

5,000 rural clients.

(b)  Loan Services/Products

• Agricultural loan (crop production, animal husbandry);

• Petty trade;

• Handicraft and processing;

• Construction;

• Service.

Annual Lending Rate

12.5% with 2.5% additional service charge (declining rate)

Loan Size and Loan term

Loan Term

Loan Eligibility Criteria

• Potential clients should be able to make pre-loan compulsory saving while taking a seven-day training;

• Permanent residence of the concerned Kebele;

• He/she should be active poor;

• His/her age should be between the range of 18 to 64 years;

• He/she should be free of any debt.

Type of Collateral Needed

Group Guarantee is the only collateral needed for all loan types.

Some of the economic activities financed so far

• Agriculture;

• Service;

• Trade and

• Handicraft.

Grace Period

A grace period of two months is provided to clients with agricultural loan.

Time needed to process and get loan

Four days.

Business Plan Presentation

At this stage, no business plan is required of clients to access loan. 

Loan Application Format

The loan application format has the following contents:

• Biographic data of the clients, type of activity the loan is required for, profit ability of the business, availability of market for product/service of the borrower.

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

No financial services to new business start-ups at present.

(c)  Savings Products

(d) Other Services

No other Services are specified.

Service Out-let

• In rural areas, the services of the Institution are given at the doorsteps of the clients;

• In urban areas services can be accessed through branch/sub-branch offices of the Institution.

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

Not specified.

Frequency of Revising Institutional Policies

Amendments to existing policies would be considered every two-years.

Address

P.O.Box:190, Assosa, Ethiopia

Telephone:+251-7-750666/751379/751188

Fax:+251-7-750094

E-mail: bgmf@telecom.net.et bgmf@telecom.net.et

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