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
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 |
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 |
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 |
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 |
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 |