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Wisdom 
Micro-Finance Institution

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Finance-Home  I  Banks  I  Micro-Finance  I  Insurances

 

 

( a )  General Information

 

Year of Establishment

June 1998

 

Legal Status

Wisdom Micro-financing Institution (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

  • Oromiyaa Regional State

  • Southern Nations and Nationalities Peoples Regional State (SNNPRS)

  • Amhara Regional State

Future Expansion Plan

Wisdom MFI intends to increase its outreach within the existing operational regions during the coming 3 to 5 years.

 

Total Number of Woredas Covered so far

Not indicated

 

Total Number of Branches Opened so far

3 Branches with 15 sub-branches

 

Total Number of Clients served so far

12,000 clients

 

Gender Sensitivity

Male clients = 72%, Female Clients = 27%

 

(b)       Loan Services/Products

  • Agricultural Loan

  • Businesses Loan

  • Enterprise Loan

Annual Lending Rate

12.5% with 2% service charge

 

Maximum Loan Size per Loan type

Cycle

Amount (Birr)

Agricultural Loan

5,000

Businesses Loan

5,000

Enterprise Loan

5,000

 

Loan Term

Maximum Loan term = 12 months

Minimum Loan term = Not specified.

 

Loan Eligibility Criteria

  • Existing business – with more than six months experience;

  • Regular saver;

  • Permanent resident in the operational area;

  • Willingness to be organized in a solidarity group.

Type of Collateral Needed

Group Guarantee/Collateral.

 

Some of the economic activities financed so far

  • Petty trade;

  • Cattle fattening;

  • Cattle sale;

  • Grain vending;

  • Agriculture;

  • Services.

Grace Period

No Grace period.

 

Time needed to process and get loan

2 – 4 weeks

 

Business Plan Presentation

The business plan is part of a simplified two-page application form, not as such a business plan.

 

Loan Application Format

Clients are required to complete the following application form at Wisdom to access loans.

 

Target Clients for Loans

  • Individual micro entrepreneurs and farmers.

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

Clients need to have at least 6 to 12 months experience in business they wish to take loan. Wisdom does not finance start-ups.

 

Frequency of Revising Institutional Financial Policies

Annually and even more frequently than that if it is compelling and urgent  

 

(c) Savings Products

No.

Type of Saving

Annual Deposit Rate

Remark

1.

Individual Borrower’s Compulsory Saving

3%

 

2.

Individual Borrower’s Voluntary Saving

3%

 

 

(d) Other Services

  • No other services were specified.

Service Out-let

In rural areas

  • through community banks of at least 20 members;

  • through branch/sub-branch offices

  • at clients doorsteps.

In urban areas

  • through branch/sub-branch offices;

  • through a solidarity groups of 5 to 8 members.

 

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

Type of Product

Loan

Savings

Other Related Services

-

Passbook saving

Loan insurance

-

Time deposit

Business insurance

 

Address 

P.O.Box:  31487, Addis Ababa, Ethiopia  

Telephone:  +251-1-293368/627744

Fax:  +251-1-293346

E-mail: worku_tsega@wvi.org   

 

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