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Peace 
Micro-Finance Institution

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Poverty Eradication And Community Empowerment (PEACE) 

Year of Establishment

November 1999

Legal Status

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

Current Operational Area (s)

Oromiyaa ( Robe Goba, Ginnir, Delosebro, Gassera, Goro, Adaba, Sendafa), Amhara (Kuyu/east Gojam, Mollale, Lalulama midir) and Southern Nations and Nationalities Peoples’ Regional States (Zefne)

Future Expansion Plan

PEACE has a plan to open three additional branches in Oromiyaa Regional State and one each in the Amhara and Southern Nations and Nationalities Peoples’ Regional State (SNNPS) in the coming three to five years.

Total Number of Woredas Covered so far

Three Woredas in Oromiyaa and two each in Amhara and SNNPRS.

Total Number of Branches Opened so far

Seven

Total Number of Clients served so far

16,874 rural clients.

Gender Sensitivity

Male clients = 38.1%, Female Clients = 61.9%

(b)       Loan Services/Products

• Agricultural loan and Non-agricultural loan.

Annual Lending Rate

Non-Agriculture 15%, Agricultural loan 18%.  The interest rate is effective as of 1st February 2004.

Loan Size and Loan term Per Loan Cycle and Loan Type

Loan Term

Maximum Loan term = 12 months

Minimum Loan Term = 3 months

Loan Eligibility Criteria

Potential clients are expected to meet the following criteria:

• productive poor who is not a full time employee of others (government and formal private sector organizations);

• members of formally established associations and groups;

• willingness to save money regularly;

• permanent residence in the village;

• no outstanding loan balances with other financial service providers;

• willingness and commitment to co-guarantee other group members;

• without record of misconduct and misbehavior;

• members of associations of farmers or urban dwellers that received loans from previously operating NGOs should have a loan repayment record of not less than 95%. 

Type of Collateral Needed

Group Guarantee.

Some of the economic activities financed so far

• petty trade;

• cattle fattening;

• various types of services.

Grace Period

No Grace period.

Time needed to process and get loan

• Two to three days after application is received.

Business Plan Presentation

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

• amount of loan intended to borrow;

• type of activity/business loan is requested for;

• profitability of the proposed business;

• debt-equity ratio and repayment capacity of the proposed business;

• group’s decision after evaluating the businesses of each member.

Loan Application Format

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

• Name, address, gender and marital status;

• Type of business activity loan is requested for;

• Number of employees hired;

• Budget indicating items to be purchased with the loan fund and volume sales to safeguard repayment;

• Statement of Comittement, etc.

Target Clients for Loans

• Rural households, organized into groups.

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 PEACE. The necessary study shall be done in the future.

Frequency of Revising Institutional Financial Policies

As per needed.

( c )  Savings Products

( d )  Other Services

No other additional services are being provided at this stage.

Service Out-let

Service is provided 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

Address

P.O.Box:  5743, Addis Ababa, Ethiopia  

Telephone:  +251-1-663280/81 Mob. 09-219506

Fax:  +251-1-454088

E-mail: mpeace@telecom.net.et          peace@telecom.net.et

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