Microfinance Service

Microfinancing is a powerful instrument for fighting poverty and empowering individuals..

MSME loan 

MSME Target Groups

Micro, small and medium-sized enterprises (MSMEs) have a potential impact on achieving many of the sustainable development goals. Technical and vocational school graduates College and University graduates Other unemployed youths and Business owners who want to expand their business who establish one of the following formal business entity or cooperative:

  • Cooperatives,
  •  Sole proprietorship
  •  Partnership,
  • Share Company and
  •  Private Limited Company

Major MSMEs’ Loan 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/Kebale
    age above 18
  • 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, socially acceptable & 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 5 million Audited financial statement report prepared by legally certified auditing firm is mandatory (for existing MSMEs)
  • Willing to accept other Siinqee Bank s.c’s credit delivery policies and procedures

Rural Group Based Loan


A Rural Group Based Loan is a loan used to finance the following activities:

  1. Fertilizers;
  2. Selected (improved) seeds;

iii. Pesticides;

  1. Land rent;
  2. Irrigation;
  3. Agricultural machinery rents like combiner, tractor etc.;

vii. Purchase of farm oxen;

viii. Goats/Sheep rearing;

  1. Fattening small ruminants;
  2. Horticulture activities;
  3. Poultry,;

xii. Diary;

xiii. Purchase of cows;

xiv. Purchase of non-ruminant animals like donkey, Camel etc.;

  1. Trades like Sheep and goats, cattle, petty trade, fruits and vegetables etc.;

xvi. Cattle fattening;

xvii. Beekeeping;

xviii. Mini cafeteria;

xix. Purchase of renewable energy technologies such as solar home system (small, medium, large, and Surface Solar Water Pump system to generate energy for irrigation purpose) and Biogas and cook stove for lighting and heating for cooking food;

  1. Homemade food items and materials; and

xxi. Small shops and mini markets, etc.

Eligibility criteria for Rural Group Based Loan

  1. Good character and credit history;

ii.No outstanding loan from any lending institute or individual lenders;

iii.Having/owning movable (livestock) and/or immovable (farm land and plants) property in the Peasant Association;

iv.Economically poor but able to work and productive if financed;

  1. Permanent resident in the Peasant Association for at least one year;
  2. Hard working and productive in nature;

vii. Legally able to make contractual agreement;

viii. Age should be greater than 18 years;

  1. Willing to be governed by the rules of group liability (to be severally or jointly liable) for any default in the group;
  2. Willing to accept other Siinqee Bank’s microfinance credit and saving policies and procedures;
  3. Acquire votes and acceptance of the rest of the group members; and

xii. Committed to save compulsory and voluntary savings    Loan

Collateral/Guarantee for Group Based Loan

  • Cross guarantee among the group members (severally and joint liability among the group members).

Non – Staff Employee Loan

Targets of Employee Loan 

The targets of Employee Loan are permanent employees of Oromia Regional State, other regional state, Federal Government offices, Addis Ababa and  Dire Dawa city administrations, well-known NGOs, Banks and insurance companies,     

The loan term shall be less than or equal to 3 years.   Loan sizes for Employee Loan with salary or institutional guarantee shall not exceed 1/3(one third) of the monthly salary of the borrowing employee times 24 months and it must be repaid within a maximum of three years.

For Employee loans with other collateral options such as house or bank share certificate, the loan size shall depend on the monthly salary of the employee and the value of collateral offered but still the monthly payment (principal and interest) should not exceed 1/3 of the monthly salary of the employee.

Collateral options for Employee Loan are;

            For Employees of Oromia Regional State

  1. House (own or third party house)
  2. Institutional guarantee (government institutions, well-known NGOs, banks and insurance companies) that must be from employer organization clearly indicating as to repay on behalf of the borrower incase default happens.

iii. Bank Share Certificate

  1. Salaries of two permanent government employees whose institution must write confirmation letter stating that the organization shall take responsibility to hold clearance of the guarantors and their benefits and notify the lender branch when the guarantors leave the institution.

For Permanent Employees of other Regional State, Federal Government Offices, Addis Ababa & Dire Dawa City Administrations, well-known NGOs, banks and insurance companies; the collateral options shall be:

  1. House (own or third party house).
  2. Institutional guarantee(government institutions, well-known NGOs, banks and insurance companies) that must be from employer organization clearly indicating as to repay on behalf of the borrower incase default happens.

iii. Bank Share Certificate

Eligibility criteria

  1. The prospective client should have good credit history that to be confirmed by his/her employer
  2. Should be free from any non-performing Loan

iii. Free from any disciplinary measurers

  1. The customer should be permanent employee and should serve his/current office at least for at least 18 months
  2. The Retirement age should be considered during Loan Approval
  3. Able to present matching collateral

vii. The guarantor retirement age should also be considered during loan approval if the collateral offered is salary guarantee.

Agricultural Machinery Loan for Smallholder Farmers

Agricultural Machinery Loan for small holder farmers is a loan extended in the form of term loan for the purchase of brand new Agricultural Machineries such as Tractor with its accessories (Disc plough, Disc harrow, leveler, planter, subsoil, and tractor Mounted sprayer etc.) , Combine harvester, Motor operated thresher Motor Pumps , Bailer etc. However, the loan does not include the cost of spare parts.

The agricultural Machineries financed by the Bank are expected to conduct agricultural operation for both rain fed and irrigation system farming of the applicant and render rental service. The loan shall be repaid within a maximum period of five years and the Bank may provide a maximum grace period of six months.

Eligibility criteria

The following are the major eligibility criteria for accessing agricultural machinery loan:

  1. The applicant shall present copy of land holding certificate to attest he/she/it is engaged in farming activities and present evidence that the current year land rent is paid.
  2. The applicant may be required to present legal documents such as trade license, TIN number, if applicable.

iii. The applicant shall have a minimum of 1 hectare of land (owned or rented).

If the applicant is a cooperative or union, it shall:

  1. Present legal personality from the concerned government organ.
  2. Its members shall be farmers and same shall be confirmed by concerned authority.
  3. Present minutes of resolution on the credit request.
  4. The applicant shall present a letter from Aanaa or Zone or region or Ministry of Agriculture regarding suitability of the area for mechanization i.e. tractor and combiner operation. Moreover, the letter should state:
  5. The total arable land in the specific wereda/Zone/region in hectares.
  6. Area suitable for Mechanization at specific Aanaa/zone/region in hectares

iii. Area of land Mechanized in the specific Aanaa/zone/region in hectares

  1. Asses report at regional/Zone/Aanaa level that justifies the need of Mechanization and Amount of Machinery required at each wereda shall be presented to ascertain optimal utilization of machineries to be purchased.
  2. The applicant shall present a simple business plan showing the repayment capacity of the business.

vii. The agricultural Machineries to be financed shall meet the standard specification of the ministry of Agriculture and regional Agricultural offices. To this effect, the list of suppliers from the concerned government organ shall be used.

viii. The applicant shall make an equity contribution of at least 30% of the purchase value of the agricultural Machineries only in cash. The equity to be raised shall be deposited at one of the Siinqee Bank’s branch and it will be credited to the supplier’s account together with the approved loan amount. 

  1. The applicant shall submit proforma invoice for the specific agricultural machinery to be purchased. Any cost overrun shall be covered by the applicant.
  2. The applicant shall recruit skilled agricultural machinery operator or present testimony document that confirms he/she can perform the overall farm machinery operation activities.
  3. The Bank shall make sure that there are sufficient agricultural machinery maintenance/repair service providers in the area.

Collateral

The applicant is required to present any of the following collateral options or combinations of different collateral options; such as house collateral, institutional guarantee (town or Aanaa administration), second level land certificate, green card, etc. In addition, the agricultural machinery to be bought shall be also held as collateral.

  1. The applicant shall agree to pay any charges applied as per the terms and tariffs of the bank.
  2. Other customer due diligence activities shall be also conducted by the lending branch.
Women Entrepreneurship Development Program Loan (WEDP)

WEDP loan is intended to enhance women owned businesses or entrepreneurs. The main targets are businesses owned with good entrepreneurship knowledge and skills established as one of the following business entities i.e. sole proprietor, Private Limited, Share Companies or partnerships as per the commercial code of the country and are registered with the concerned body. For businesses established by more than two individual, the number of female should be higher than the number of male and the photo that should be appeared on the trade/investment license shall be of the female member.

In addition, the applicant should present WEDP ID or Green Card from the concerned issuing body in the name of the member whose photo is appeared on the trade/investment license.

Agricultural Based Individual Loan(ABIL)

ABIL for Graduating and Other Customers

Siinqee Bank transforms well performing rural group based customers to individual loan programs. These customers shall be those existing borrowers with good repayment track and other individual model farmers with good character and capacity who are able to present acceptable collateral.

Targets

New and existing customers of Siinqee Bank dwelling in rural areas of the bank’s operational area.  Existing customer shall include those borrowing in group based loan scheme and wants to borrow individually, and those who left the loan program due to own reasons. Customers applying for loan shall be those with good credit history and saving performance. New customers are those individuals who have good character, capacity and can provide acceptable collateral.

  1. Loan purpose
  2. Any trading activities which are lawful and socially acceptable;
  3. Purchase of inputs for agriculture;

iii. Fattening activities and/or animal husbandry;

  1. Purchase or rent of materials like land, agricultural machines, etc.…
  2. Improved or modern farming activities;
  3. Irrigation and etc.…
  4. Requirements
  5. Permanent resident of the lending branch;
  6. Should apply for loan and able to present simple business plan (showing lists and size of items to be purchased along with purchase price, other expenses related to these items, amount to be produced, selling price of the product and revenue finally generated) to determine the loan size. CRO should assist and guide the loan applicant in fulfilling the formats based on the ideas and capacity of the borrower;

iii. He/she should be new or rural group loan graduate customer with good credit history and saving performance;

  1. Able to present sufficient collateral or guarantee
  2. All eligibility criteria of rural group based loan borrowers will apply here except lending methodology and collateral (cross guarantee).

iii. Loan Size

  1. Before determining the loan size, the responsible staff shall apply the five C’s of credit or lending criteria which are the basic components of credit analysis i.e. character, condition, capacity, collateral, and capital;
  2. The maximum loan size is Birr 200,000.00 (two hundred thousand birr) for Second Level Land Certificate (SLLC) collateral bearers and Birr 1,000,000.00 (one million birr) for borrowers who can present house collateral, Bank Share Certificate, Fixed Time Deposit (Block Account) etc.;

The collateral options for ABIL product:

  • Second Level Land Certificate;
  • Salary of permanent government, well-known NGOs, Banks,
  • Microfinance Institutions and Insurance Companies employees;
  • Productive farm land ownership title (green card) minimum of 2 (two) hectare for bulk farming and one (1) hectare for irrigation

Commercial trees including coffee plant, fruit plant, chat plant, eucalyptus tree cultivated on not less than ¼ hectare of land

Urban Group Based loan 

In order to target urban group-based loan customers, it is important to contact Kebele/Ganda administration, women association, women affairs office or any other organizations working on women to find sufficient number of women targets and so that forming loan groups can be easy.

Urban Group Based Loan purposes

  1. Fertilizers;
  2. Selected (improved) seeds;

iii. Pesticides;

  1. Land rent;
  2. Agricultural machinery rents like combiner, tractor etc.;
  3. Purchase of farm oxen;

vii. Fattening small ruminants;

viii. Poultry;

  1. Diary and Purchase of cows;
  2. Purchase of non-ruminant animals like donkey, Camel etc.;
  3. Petty trades;

xii. Fattening;

xiii. Fruits and Vegetable trade;

xiv. Beekeeping;

  1. Bakery;

xvi. Photocopier;

xvii. Mini cafeteria;

xviii. purchase of renewable energy technologies such as solar home system (small, medium, large, and Surface Solar Water Pump system to generate energy for irrigation purpose) and Biogas and cook stove for lighting and heating for cooking food;

xix. Homemade food items and materials (Baltina); and

  1. Shops and mini markets, etc.

Eligibility Criteria:

  1. Good character and credit history;
  2. No outstanding loan from any lending institute or individual lenders;

iii. Economically poor but able to work and productive if financed;

  1. Permanent resident in the Ganda for at least one year;
  2. Renewed” Ganda” Identity or ID Card;
  3. Hard working and productive in nature;

vii. Legally able to make contractual agreement;

viii. Age should be greater than 18 years;

  1. Willing to be organized by a group of 3-10 members and to be governed by the rules of group liability (to be severally or jointly liable) for any default in the group;
  2. Acquiring acceptance by the members when forming the group;
  3. Committed to save compulsory and voluntary savings; and

xii. Willing to accept other Siinqee Bank’s credit and saving policies.

3.2 Collateral (Group Liability)

Urban Group Based Loan shall be backed by Solidarity Group Liability. In addition, urban group based prospective loan groups should bring letter of support from peasant association Administration to support Siinqee Bank in case repayment problem will face.

OGETI loan 

OGETI loan is intended to enhance women owned businesses or entrepreneurs. The main targets are businesses owned with good entrepreneurship knowledge and skills established as one of the following business entities i.e. sole proprietor, Private Limited, Share Companies or partnerships as per the commercial code of the country and are registered with the concerned body. The targeted women can be of different educational background, being graduated from Technical Education and Vocational Training (TEVT), Colleges and Universities as well as other unemployed women running businesses either individually or in an organized form. For businesses established by more than two individual, the number of female should be higher than the number of male and the photo that should be appeared on the trade/investment license shall be of the female member. In addition, the applicant should present Training certificate on the business engaged from the concerned issuing body in the name of the member whose photo is appeared on the trade/investment license. Applying credit seeker should stay in business for at least six months. Ogeti Loan, , will be provided in areas where Siinqee Bank Microfinance credit service is provided with the same criteria of WEDP Loan except WEDP ID or Green Card.
NB: All other credit procedures applied on other credit products will work OGETI Loan Borrowers.

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Microinsurance offers affordable and accessible insurance products tailored to the needs of low-income individuals and small businesses. These products typically cover risks related to health, life, property, or business activities.

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