Article Index

ENTERPRISE AND RETAIL FINANCING

OCSSCO, as a development supporting MFI, gives financing priority to enterprise loan that can contribute to the economic growth, industrial transformation and the sectors that can create more job opportunities. In line with this, enterprises working on manufacturing and other related business that are supporting the export sector as well as produces raw materials or products that can substitute imports shall be OCSSCOs‟ priority sectors for financing.

Ø  Manufacturing: Textile and garment, Leather and leather products, Food processing and beverage, Metal engineering, Wood work, Handicrafts, Agro processing

Ø  Construction: General contractor, Sub-contractors, Production of construction inputs,   Traditional mining, Coble stone, Infra structure sub contract

Ø  Trading: Domestic products wholesaling, Domestic products retailing, Inputs delivery

Ø  Service Sectors: Transport service or purchase of Vehicle (Bajaj), Cafeteria and      Restaurant, Store Packing, Consultancy, Project engineering, Product design and    Development, Maintenance, Beauty salon, Electronics software development, Décor,  Internet café

Ø  Urban Agriculture: Modern fattening, Bee keeping, Poultry, Modern forestry/nursery, Vegetables and fruits, Modern irrigation  

  The Major Classification of Enterprise and Retail Financing

 

 

 

 

1, MSME                    2, Youth Fun MSE                         3, BL                                      4, WEDP

 

  1. Micro, Small, & Medium Enterprise (MSME)

Targets/ customer segment

Technical and Vocational Schools graduates, colleges and universities graduates as well as other unemployed youths or business persons living in rural or urban areas of the company’s operational area who establish one of the following formal business entity: Cooperatives, Sole proprietorship, Partnership, Share Company and Private Limited Company

Eligibility Criteria

     Free from any debt i.e. members must not have any outstanding or non-performing loan

     Permanent resident of the operational area of the lending branch and able to present ID from Ganda.

     Age between 18-60.

     Willing to save the required pre-loan saving i.e. should save 10% of the required loan as a pre-loan saving and abstain to withdraw until the loan is fully repaid.

     Viable business plan or project proposal

     Credit worthy business and lawful

      Able to make legal contract

     Good character including the clients credit history (if any), household stability and support as well attitude towards credit repayment

     Good management competencies

      Willing to present matching collateral

     MSME Certificate and Renewed Business License

      Appropriate working and sales outlets

     Job related experience and skill

     Willing to present financial statement prepared by legally authorized accounting firm but for loan request greater than 2million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing MSMEs)

     Willing to accept other OCSSCO‟s credit delivery policies and procedures

Required Documents

  • Credit Application: The loan application should be stamped and signed by the chair person in case of cooperatives and in case of S.co, Plc, Partnership and sole proprietorship it should be signed by the General Manager.
  • Pre-loan saving: borrowers are required to save 10% of the loan request as a pre-loan saving.
  • Renewed Business/Investment License: All MSMEs (Cooperatives, S.Co., Plc, Partnership and Sole proprietorship shall be required renewed business license for the period the loan is requested
  • Business plan with forecasted cash flow statements: All contents of the business plan should be recorded and posted properly. The figures on the business plan should be properly tallied and posted to each subsection accurately.
  • Evidences of working premises: The working premises can be either rented, owned, provided by the municipality or other source. If rented, the rental agreement or if provided by municipality temporarily ownership certificate or if it is from other source ownership certificate should be presented.
  • Members renewed Identity Card: Each member of cooperative MSMEs, S.co, Plc, Partnership or individual MSME owner required to submit renewed identity card. The cooperative MSME members should be from the same town /Aanaa.
  • Evidences of Skill or Experience: Operators or member/s should have experience, skill or training of the job that the MSME has planned to undertake. The evidence that certifies the skill/experience becomes more important especially, if the job is technical and requires special skill.
  • Registered memorandum and Article of associations (for all types of business including cooperative MSMEs excluding Sole proprietorship).
  • Coy of renewed identity card of individual applicant and his or her spouse (if married). Marriage certificate is also required.
  • Financial statement prepared by legally authorized accounting firm but for loan request greater than 2million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing MSMEs)
  • Tax payer registration certificate, if applicable
  • Collateral
  • pro-forma invoice, if applicable
  • Insurance agreement for loan collateral (right after loan is approved), if applicable

Collateral Options

Ø  House Collateral

Ø  Salary Guarantee

Ø  Second level land certificate (rural land ownership certificates)

Ø  Credit Guarantee Scheme

Ø  Institutional Guarantee letter (town municipality, and share company etc)

Ø  Time deposit certificate /Evidence of blocked account

Ø  Vehicle Guarantee

Ø  Mix of any type mentioned above  

  1. Youth Fund Micro and Small Enterprise

Targets/ customer segment  

Graduates and non-graduates living in rural or urban areas of the company’s operational area who established one of the following formal business entity: Cooperatives, Partnership, Share Company and Private Limited Company

Eligibility Criteria

  • Free from any debt i.e. members must not have any outstanding or non-performing loan
  • Age between 18 – 34
  • unemployed youth and able to present evidence from concerned body (PA)
  • Willing to be governed by the rules of cross guarantee (to be severally or jointly liable) for any default in the group.
  • Willing to present family commitment guarantee
  • Permanent resident of the operational area of the lending branch and able to present ID from Ganda
  • Willing to save the required pre-loan saving i.e. should save 10% of the required loan as a pre-loan saving and abstain to withdraw until the loan is fully repaid.
  • Credit worthy business and lawful
  • Good character including the clients credit history (if any), household stability and support as well attitude towards credit repayment
  • Good management competencies
  • MSE Certificate and Renewed Business License
  • Appropriate working and sales outlets
  • Job related experience and skill
  • Willing to accept other OCSSCO‟s credit policies and procedures

Required Documents to be fulfilled

  • Credit Application: The loan application should be stamped and signed by the chair person in case of cooperatives and in case of S.co, Plc, and Partnership it should be signed by the General Manager.
  • Pre-loan saving: borrowers are required to save 10% of the loan request as a pre-loan saving.
  • Renewed Business/Investment License: All revolving fund MSE borrowers (Cooperatives, S.Co., Plc, and Partnership) shall be required renewed business license for the period the loan is requested
  • Business plan with forecasted cash flow statements: All contents of the business plan should be recorded and posted properly. The figures on the business plan should be properly tallied and posted to each subsection accurately.
  • Evidences of working premises: The working premises can be either rented, owned, provided by the municipality or other source. If rented, the rental agreement or if provided by municipality temporarily ownership certificate or if it is from other source ownership certificate should be presented.
  • Members renewed Identity Card: Each member of cooperative MSEs, S.co, Plc, or Partnership revolving fund MSE owner required to submit renewed identity card. The cooperative MSE members should be from the same town /Aanaa.
  • Evidences of Skill or Experience: Operators or member/s should have experience, skill or training of the job that the enterprise has planned to undertake. The evidence that certifies the skill/experience becomes more important especially, if the job is technical and requires special skill.
  • Registered memorandum and Article of associations (for all types of business including cooperative MSEs excluding Sole proprietorship).
  • Pro-forma invoice, if applicable
  • Tax Identification number (TIN), if applicable

Collateral Options

Ø  House Collateral

Ø  Salary Guarantee

Ø  Second level land certificate (rural land ownership certificates)

Ø  Credit Guarantee Scheme

Ø  Institutional Guarantee letter (town municipality, and share company etc)

Ø  Time deposit certificate /Evidence of blocked account

Ø  Vehicle Guarantee

Ø  Mix of any type mentioned above  

  1. Business Loan

Targets/ customer segment  

The main target of business loan is any individual licensed to run a business individually or jointly. Business loan is intended to enhance those self-employed or independent business runners in the market. This business loan targets are those who are graduated from Technical Education and Vocational Training (TEVT), Colleges and Universities as well as other unemployed women & youths who are interested to run a business individually.

Eligibility Criteria for Business Loan

  • Permanent resident of the operational area of the lending branch and able to present ID from Ganda
  • Good character including the clients credit history, household stability and support as well attitude towards credit repayment
  • Age between 18 – 60
  • Willing to accept other OCSSCO‟s credit policies and procedures
  • the business to be financed is legally and socially acceptable
  • Viable business plan,
  • Renewed Business License,
  • Job related experience and skill for a none graduate business runners,
  • Job related educational background and certificates of short term trainings in relation the job by TVET or other recognized bodies
  • Appropriate working and sales outlets
  • Willing to present financial statement prepared by legally authorized accounting firm but for loan request greater than 2million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing Business)
  • Willing to save 10% of the required loan as a pre-loan saving
  • Willing to present matching collateral