Credits/Loans

BG MFI will realise its mission through the delivery of poor-friendly micro-loans and saving mobilization services that meet the needs and capacities of its target market. BG will render its services by building an institution that is efficient, profitable, transparent and responsive to the needs of its clients. The institution is developing multiple financial products and services delivery mechanism to fulfill the changing need of its target clients over a period of time. Currently, Buusaa Gonofaa provides multiple loan products and saving services that meet the needs and livelihood priorities of its target clients.

Loan Products

 

  Group Loan -Regular

 

No Main Features Description of Features
1 Targets Women & petty traders
2 Loan Purpose Working capital
3 Maximum Initial loan size Birr 3,000
4 Group Size 5-10
5 Interest rate & calculation method 18% per annum, flat
6 Minimum loan size Birr 200
7 Maximum loan size Birr 10,000
8 Repayment modality Weekly/biweekly or monthly installment
9 Compulsory saving 10% of the loan disbursed + monthly periodic depositof birr 10.
10 Service charge 0.5% of the loan disbursed


  Group Loan -Term


No Main Features Description of Features
1 Targets Smallholder farmers
2 Loan Purpose Farming activities ,animal rearing and fattening ,
3 Maximum Initial loan size Birr 2,000
4 Group Size 10-25
5 Interest rate & calculation method 24% per annum, flat
6 Minimum loan size Birr 200
7 Maximum loan size Birr 6,000
8 Repayment modality End of loan term; interest portion monthly installment
9 Compulsory saving 10% of the loan disbursed + monthly birr 10
10 Service charge 0.5% of the loan disbursed


  Group Loan -Employee


No Main Features Description of Features
1 Targets Salaried employee of government & non-government organization
2 Loan Purpose Consumption and income generating activities
3 Guarantee  Employer commitment to deduct from payroll
4 Group Size 3-10
5 Interest rate & calculation method 12.6% per annum, flat
6 Minimum loan size Birr 500
7 Maximum loan size 1/3 rd of monthly salary but cannot exceed Birr 10,000
8 Repayment modality  Monthly installment
9 Compulsory saving 5% of the loan disbursed
10 Service charge 2% of the loan disbursed


  Individual Loan


No Main Features Description of Features
1 Targets Smallholder farmers
2 Loan Purpose Irrigation farming, small ruminant fattening,
3 Guarantee  Personal guarantors
4 Interest rate & calculation method 18-24% per annum, flat
5 Minimum loan size Birr 1,000
6 Maximum loan size Birr 50,000
7 Repayment modality  End of loan term
8 Compulsory saving 10% of the loan disbursed
9 Service charge 1% of the loan disbursed


  Individual Loan-SME Loan


No Main Features Description of Features
1 Targets Micro & small enterprises
2 Loan Purpose Service, trade, manufacturing & agriculture
3 Guarantee  Personal guarantors & property
4 Interest rate & calculation method 15 % per annum, flat
5 Minimum loan size Birr 10,000
6 Maximum loan size Birr 100,000
7 Repayment modality Cash flow base
8 Compulsory saving 10% of the loan disbursed
9 Service charge 1% of the loan disbursed