1.      Credit Services:

Company has been offering diversified loan products to its customers. Solidarity group based loan, MSE Loan, Business loan, WDEP Loan, General purpose loan, Business Loan, Housing loan  and Interest Free Finance are the major loan products of the company.

1.1.               Solidarity Group Based Loan (SGBL):- SGBL is a microloan that self organized groups in rural and urban settings are eligible to borrow through group liability. It targets all segments of low income population but mainly women and unemployed youths.

1.2.              Micro and Small Enterprise Loan (MSEL):- MSEL targets higher education institution graduates as well as other unemployed youths or individuals who establish one of business entities such as Cooperatives, Sole proprietorship, Partnership, Share Company and Private Limited Company.

1.3.            Business Loan (BL):- BL is a loan type that offered to individual or group business runners.  The operators need to present matching collateral for their loan request i.e. obviously legal urban house.

1.4.            Women Entrepreneurs Development Program Loan (WEDP):- WEDP loan intends to enhance women owned individual businesses or enterprises through ensuring financial support. The main targets are individual businesses owned by women and of organized women enterprises that are in operation for at least 6 months.

1.5.            General Purpose Loan (GPL):- GPL is a loan product for permanent employees of government and non government organizations that borrowed for any personal affairs through presenting equivalent salary guarantee. 

1.6.            Housing Loan (HL):- This is a housing loan for employees to contribute toward the efforts that have been made by government in reducing the housing problems in towns.  HL is provided to permanent government and non-government employees, police forces and government appointee officials who can present required guarantee or collateral.

1.7.            Interest Free Finance (IFF):- IFF is finance services delivered to clients who don’t want to borrow with interest due to their religion. The service is offered in consistent with Islamic (Sheria) finance principles. OCSSCO provides interest free finance known as Murabaha Financing which is an asset-based sale transaction used to finance goods.

S/L

Product Type

Modality

Maximum Loan Size

Maximum Loan Term

Interest Rate

Service Charge

Collateral/

Guarantee

1.

Rural Solidarity Group Based Loan

In group

15,000 ETB

1 yrs

17 %

3%

Group liability

2.

Urban Solidarity Group Based Loan

In group

15,000 ETB

1 yrs

17 % Decline

3%

Group liability

3.

Micro & Small Enterprise

As business entity

Depends on business plan & collateral

Up to 5 yrs depends on cash flow

13 % Decline

3%

House, Salary, land certificate, vehicle, institutional guarantee

4.

Business Loan

As business entity

Depends on business plan & collateral

Up to 3 yrs depends on cash flow

17 % Decline

3%

Legal Urban House

5.

WEDP Loan

As business entity

Depends on business plan & collateral

Up to 3 yrs depends on cash flow

13 % Decline

3%

Legal Urban House

6.

General Purpose Loan

Individual

Depends on borrower’s salary

2 yrs

17 % Decline

3%

Salary or House  Guarantee

7.

Housing Loan

Individual

Depends on borrower’s salary

5 yrs

17 % Decline

3%

Salary or House  Guarantee

8.

Murabaha MSE Finance

As business entity

Depends on business plan & collateral

Up to 5 yrs depends on cash flow

Markup

NO

Group liability

9.

Murabaha Individual Finance

As business entity

Depends on business plan & collateral

Up to 3 yrs depends on cash flow

Markup

NO

Legal Urban House

10.

Murabaha Group Based Finance

In group

15,000 ETB

1 yrs

Markup

NO

Group liability

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