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Wisdom 
Micro-Finance Institution

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( 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

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

(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

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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