Microfinance institutions

Oromiyaa Credit and Saving S.Co. (OCSSCO) is a legally registered micro finance institution according to Proclamation No.40/1996 of the National Bank of Ethiopia.

Current Operational Area (s)

OCSSCO is operating in various areas of the Oromiyaa Regional State.

Future Expansion Plan

The Institution shall continue operating in the same region.

Total Number of Woredas Covered so far 81 Woredas

Total Number of Branches Opened so far 82 Branches

Total Number of Clients served so far 74,104.

Gender Sensitivity

Male clients = 54%, Female Clients = 46%

(b) Loan Services/Products

Agricultural loan (crop production, animal husbandry, etc);
Trade loan;

Annual Lending Rate

11.5% with 3% additional service charge. There is also a member fee of Birr 10 per client.

Loan Size and Loan term Per Loan Cycle and Loan Type

Type of Loan	Loan Size per Loan Cycle (Birr)
Type of Loan	1^st cycle	2^nd cycle	3^rd cycle	4^th cycle	5^th cycle
1. Agricultural loan	1,000	1,200	1,500	1,800	2,000
2. Trade	“	“	“	“	“

Loan Term

Type of Loan	Loan Term (Months)
Type of Loan	Maximum	Minimum
1. Agricultural loan	3	12
2. Trade Loan	“	“

Loan Eligibility Criteria

Active poor living in the operational area;
Honesty;
Willingness to bear joint (group) liability;

Type of Collateral Needed

Group Guarantee for non-agricultural small loans;
Co-signatories are required for small agricultural technologies.

Some of the economic activities financed so far

Agriculture;
Small business activities;
Small agricultural technologies.

Grace Period

The grace period depends on the cash flow situation of the business of the client.

Time needed to process and get loan

Within few days. (No specific number is provided).

Business Plan Presentation

No business plan is required

see loan application format next page....

Individual Loan requisition and approval form

1. Name of the Client: ____________________

2. Group Number: ____________________

3. Center Number: ____________________

4. Zone : ____________________

5. Woreda : ____________________

6. Amount of loan requested: ____(in words________)

7. Purpose of loan ____________________

8. Loan repayment date including the 12.5% interest

a) Date_____________Month______Year__________

b) Date_____________Month______Year__________

c) Date_____________Month______Year__________

Total_________

9. Requested by:

Name : ______________

Date : ______________

Signature : ______________

10. Evaluated by:

10.1 Name of group leader:__________Date: __________Signature__________

10.2 Name of center leader:__________Date:___________Signature:________

11. Approved by:

Name: ___________________

Date: ___________________

Signature ___________________

We, the undersigned group members, have agreed to take a responsibility of paying back the amount of loan taken by Mr./Ms/Mrs__________________in case he/she fails to do so.

Name Signature

1. ____________________ ____________________

2. ____________________ ____________________

3. ____________________ ____________________

4. ____________________ ____________________

5. ____________________ ____________________

6. ____________________ ____________________

Target Clients for Loans The active poor

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

No	Type of Saving	Annual Deposit Rate	Remark
1.	Compulsory Saving by the borrower	4%	A minimum of Birr 2 per client should be saved per month.
2.	Voluntary saving by the borrower	4%	Any amount can be deposited
3.	Solidarity Group saving	4%	10% of the loan required should be deposited before accessing the loan= (upfront saving)
4.	Center saving	4%	A minimum of Birr 1 per client should be saved per month.

(d) Other Services

Micro Loan Insurance

Premium

Premium for giving micro insurance coverage to outstanding loan balance of a client (including the outstanding interest) is 1% of the outstanding loan and interest balance;
Premium for giving micro insurance coverage to outstanding loan balance of a client (including the outstanding interest), plus some additional benefits is 1.5% of the outstanding loan and insurance balance.

Service Out-let

In rural areas, the services of the Institution can be accessed in 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

Loan: Urban business loan; Technology financing.

Saving: Savings services to relatively big institutions.

Frequency of Revising Institutional Policies When the need arises.

Address

P.O.Box: 19853, Addis Ababa, Ethiopia

Telephone: +251-1-534872/73/524644 Mob.09-219506

Fax: +251-1-534871

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

Finance-Home I Banks I Micro-Finance I Insurances

Business Development Services (BDS) Forum
www.bds-forum.net edited by Dieter Gagel, freelance consultant, providing information on BDS strategies,
networking and practical BDS case studies as well as business information on marketing, business planning,
bookkeeping and cost calculation, import-export, trade fairs and access to finance.

New BDS Portal in Senegal www.senegal-entreprises.net .
One of the biggest national BDS portals world wide!

Value Chain Development in Ethiopia www.business-ethiopia.com