Small and Medium Enterprise Loan (SME Loan)
“Yegna for All!”
SME loan is mainly intended for financing small and medium enterprises that are both at a start-up phase or are already in business in urban and rural areas. This loan will be availed to organize SMEs for working capital, fixed asset purchases and to activate & support the business.
The maximum loan size of Yegna MFI individual loan is 1% of its capital and 4% of its capital for organizational loan. However, loan size of SMEs loan for a borrower is determined based on business profitability, sustainability of the business and the saving amount.
Micro Business Loan
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The purpose of micro business loans could be both for starting new business or expansion of existing business operation. Micro loans specially will have social objective of empowering micro enterprises, women and the youth by customizing loan products as per the need of these target groups.
The target groups of micro business loan will be business men especially woman involved in rural and urban micro business activities.
The maximum loan size of Yegna Micro Finance micro individual loan is 1% of capital. However, the loan size is determined based on business plan profitability set by the borrower.
Consumer Loan (Employee and Non-Employee Loan)
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Consumer loan for employees would be delivered for any personal purpose of employees like coverage of medical expense, payment of education fee, purchase of household equipment and other personal expenditures.
These types of loans are provided to meet different personal and social commitments other than productive and business engagements. Maximum loan size for the employee consumer loan is up to birr 100,000.00.
Agriculture Loan
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This loan will be availed to middle income farmer borrowers for purchasing agricultural inputs: like fertilizer, improved seed, land rent, purchase of oxen and for fattening activities.
Fixed Asset Purchase Loan
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This loan will be availed to middle income borrowers for purchasing vehicle, television, motor cycle, refrigerator, generator, household equipment, water pumps, mobile phones & accessories and other fixed assets.
The maximum loan size of fixed asset purchase loan is 1% of the company`s capital.
Housing / Construction Loan
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This loan type is a relatively long-term loan which will be granted to any eligible borrower for finishing building in construction, partial settlement of the purchase price of condominium, small shop construction, building additional classes and for other related purposes.
The maximum loan size of housing or construction loan is 1% of the company`s capital.
Special Emergency loan
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These lines of credit are mainly intended for financing Special emergency loan for those who demands finance in a short term and loan will be repaid not more than half a year. But repayment shall be made monthly (installment), Quarterly or on the lump sum at the end of the maturity
It will be used to finance importers, contractors (salary payment.) or any other business that demands immediate finance and having a short-term return.
Urban Agriculture and Innovative production loan
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These lines of credit are mainly intended for agricultural purposes including oxen, poultry, fattening, dairy, animal husbandry, small irrigation, land rent, handicraft and honey bees……. around urban areas.
The maximum loan term of urban Agriculture loan is 12-36 months.
Etege (Finance for Women)
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Yegna MFI has an objective to meet its social objectives by empowering women entrepreneurs and made special privilege by providing less interest rate and relatively long-term loan tuner for those on startup phase and also for business expansion.
These products are applicable only for women entrepreneurs and enterprise lead by women with a minimum interest rate comparing to conventional rate.
The maximum loan term of Finance for women loan is 12 to 36 months. And the repayment shall be made monthly or quarterly basis.
Short term Investment loan
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These lines of credit are mainly intended for financing for those who having a plan to purchase an asset like Vehicle and house after making a deposit for 6 months.
Client willing to deposit 20% of the loan request consequently for 6 months to purchase vehicle or house.
There should be Individuals or organizations in this loan product. Hence, group loan could not be entertained in these categories.
The maximum loan term of short-term investment loan is 12 to 60 months for purchasing vehicle and house. The repayment shall be made monthly or quarterly basis.
Public Association Loan
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Yegna MFI have a plan to work together with governmental institutions and public associations like (Eder, Shemachoch, Equib….) in order to meet its social objectives by reducing interest rate and other charges.
The loan size is determined by the amount of saving deposited by the customer but it should not exceed 1% of its capital. The loan to be approved for a particular borrower should be backed by a collateral having value 150% more than the loan approved.
The maximum loan term of public association loan is 1 months and 24 months. the repayment shall be made monthly or quarterly basis.
Special property Loan
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These lines of credit are mainly intended for financing the staffs of YMFI strategic partners. For the sake mutual benefit this product interest rate is lesser than the conventional fixed asset purchase loan.
The maximum loan term of Special property loan is 12 to 60 months. The repayment shall be made monthly or quarterly basis.
Corporate customer loan
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YMFI are mainly intended for financing the staffs of our strategic partners. Corporate customer loan rate is lesser than the conventional Consumer loan. This line of credit is directly linked to deposit mainly (fixed time deposit). Any banks or other companies agreeable to deposit a certain amount in YMF, the employee or the customer of the companies may access the loan with lesser interest rate. With this regard, YMF will decide the deposit amount and the amount of loan provide to the employee or the customer based on the liquidity level and other related parameters.
The maximum loan term of corporate customer loan is 12 months. The repayment shall be made monthly or quarterly basis. And grace period should not be allowed.
Youth Development loan
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This line of credit is facilitated to youth entrepreneurs. The loan is approved only at head office. Young and productive citizens who demand financial and technical support can run through this credit facility.
The maximum loan size of Yegna MFI individual loan is 2,000.00 to 25,000.00 for an individual loan, and maximum of 60,000.00 for a group loan.
Bridge loan
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These lines of credit are mainly intended for financing the customer of YMFI to fill the gap b/n the loan transitions. The applicant should be YMFI loan customer and agree to take 2nd/ 3rd cycle loan.
The maximum loan term of Bridge loan 3 months. The repayment shall be made monthly or quarterly on lump sum.
Project Financing
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These lines of credit are mainly intended for financing the customers on Start-Up phase. The disbursement should be implemented on cycle by cycle based on the business demand.
The maximum loan term of Project finance loan 36 months. The repayment shall be made monthly or quarterly. based on the business feature maximum of 3 month of grace period should be granted.
Tibeb/Art Loan
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These lines of credit are mainly intended to finance the artist for the purpose of publishing books and magazines, for realizing the music Album, for Art galleries and other related purpose. The disbursement should be implemented once or in Phase manner based on the demand.
The maximum loan term of TIBEB loan is 36 months. The repayment shall be made monthly or quarterly basis.
