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ESHET 
Micro-Finance Institution

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(a)   General Information

Year of Establishment

March 2000

Legal Status

ESHET Micro Finance S.Co. was legally registered by the National Bank of Ethiopia, according to Proclamation No.40/1996.

Current Operational Area (s)

Oromiyaa Regional State

Future Expansion Plan

ESHET has a plan to expand in more zones of the Oromiyaa Regional State (West Shoa and Jima Zones) in the next three to five years.

Total Number of Woredas Covered so far

Four Woredas of Oromiyaa

Total Number of Branches Opened so far

Five Branches

Total Number of Clients served so far

7,119 clients out of which 2,098 are urban and 5,021 rural clients.

Gender Sensitivity

Male clients = 68%, Female Clients = 32%

(b)  Loan Services/Products

• Six-month loan;

• Nine-month loan;

• Annual loan.

Annual Lending Rate

24%

Loan Size Per Loan Cycle and Loan Type

Loan Term

Loan Eligibility Criteria

• the client should have permanent residence in the area;

• he/she should be within the range of low to middle income group of the local community;

• willingness to be a member of a group and abide to the bylaws of the group;

• willingness to accept group guarantee and take the responsibility of paying defaulted

• loans by any one member, in collaboration with the rest of the group members;

• no credit with other lending institutions;

• willingness to make regular savings;

• no two or more family members can join the same group;

• willingness to pass through pre-loan (preparatory) period of up to two month, on average.

Type of Collateral Needed

No physical collateral is required for all loans but group guarantee.

Some of the economic activities financed so far

• petty trade;

• farming;

• animal husbandry;

• handicraft;

• production of local drinks;

• business-like barber services.

Grace Period

Time needed to process and get loan

Business Plan Presentation

No business is required to access loans. 

Loan Application Format

• Borrowers should fill out loan application format with the following contents;

• General information about the client (Name. age, sex, occupation, etc.)

• Previous loan information: source of credit and loan outstanding balance, if any;

• Size and purpose of loan requested;

• Loan approval: amount approved, loan term, interest rate, repayment interval/pattern

• (schedule), etc.;

There is a loan agreement to be entered between the borrower and the

Institution. The terms of agreement are:

• Loan term and final date of completing the loan;

• Repayment interval;

• Interest rate;

• Group members consent to co-guarantee each other;

• Consent of group leaders to enforce payments in case of loan default by group members;

• Consent of a guardian/husband/wife for equal responsibility for proper repayment of loans;

Target Clients for Loans

• Urban and rural households.

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

ESHET provides loans to new business start-ups provided that they accept group-lending methodology and meet criteria set for accessing loans.

Frequency of Revising Institutional Policies

The loan policies are revised annually.

(c) Savings Products

(d) Other Services

No other services at present.

Service Out-let

Service is pro vided at the doorsteps of the client and branch/sub-branch office of the Institution.

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

Loan

• Individual loan

• Enterprise loan

Address

P.O.Box:  23923 code 1000, Addis Ababa, Ethiopia     

Telephone:  +251-1-671495/94 Mob. 09-230413

Fax:  +251-1-661496

E-mail:eshet@telecom.net.et

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