Meklit MFI - Business Loan - Group - MFTransparency.org Truth In Lending Tables

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Institution

Meklit MFI Ayer TenaAddis AbabaPO Box 27634

Data approved: 2011-12-23

Data version: 1

Age of data: 161 months

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Product

Business Loan - Group Product 2 of 4 « Prev | Next »

Product Details

Key Statistics

Outstanding portfolio (ETB)	ETB 4,500,000
Portfolio (USD)	USD 244,565.22
Active Clients with Loans	1,500
Approximate % Female Clients	40% - 60%
Approximate % Urban Clients	60% - 80%

Methodology

Individual
Solidarity group	x
Village banking
Self help group
Other

Description

This is a loan for business purposes, delivered in groups. Collateral is needed and it is repaid monthly, with an interest rate of 22% and loan term of 12-24 months.

Loan Purpose

Any purpose
Income generation	x
Mortgage/housing
Consumer loan
Agriculture
Education
Other household finance
Other
Other (2)

Included Services

Credit education	x
Group meetings	x
Credit insurance	x
Workplace visits
Business training
Other training
Other
Other (2)
No other services

Eligibility

Men	x
Women	x
Must run a business	x
Must own a home or land
Must be a salaried worker
Must be specific age group
Other
Other (2)

# Borrowers by Product

Portfolio Size by Product

Geographic Coverage

# Regions for this institution	N/A
# Regions for this product	N/A
Regions Active

Loan Conditions

Loan Amount

Currency	ETB
Minimum loan size	ETB 1,000
Maximum loan size	18,000

Loan Term and Grace Period

Shortest loan term	12.0 months
Longest loan term	24.0 months
Approx average	12.0 months

Grace Period

Grace period usage	0
Average grace period	0

Repayment Frequency

Daily
Weekly	x
Every 2 weeks
Every 4 weeks
Monthly	x
Every 2 months
Quarterly
Every 6 months
Every 12 months
Single end payment	x
Irregular payments

Pricing Information

Interest

Lowest quoted nominal interest	20.00%
Highest quoted nominal interest	20.00%
Interest rate period	Yearly
Interest Rate Calculation Method	Flat
Subsidized by funder request?
Is rate fixed for entire loan term	Yes

Upfront Fees

	Fee 1
Description	Service Charge
% of loan amount - min	2.00%
% of loan amount - max	2.00%
OR, Fixed amount - min	0
Fixed amount - max	0
Reason for variation
Appears on Repayment Sched?	Yes

Ongoing Fees

This product has no ongoing fees

Upfront Insurance Fees

	Ins 1
Description	Loan Insurance
% of loan amount - min	0
% of loan amount - max	1.50%
OR, Fixed amount - min	0
Fixed amount - max	0
Reason for variation	<1000 ETB=1%,<2000 birr=1.2%,<3000 ETB=1.3%, <4000ETB=1.4%, <5000 ETB=1.5%. Over 5000 ETB=0
Appears on Repayment Sched?	Yes

Ongoing Insurance Fees

This product has no ongoing insurance fees

Compulsory Deposit

Required for	All
Criteria	N/A
Is deposit indicated on the repayment schedule?	Yes
Do borrowers control deposit in their group?

Deposit BEFORE or AT Disbursement

% loan amount deposited	5.00% - 15.00%
or, Fixed-amount deposited	0

Deposits DURING period payments

% loan amount deposited	5.00% - 15.00%
or, Fixed-amount deposited	0
Conditions on access to deposit	End Term

Interest Paid on Deposit

Minimum interest rate paid	5.00%
Maximum interest rate paid	5.00%
Interest payment frequency	Annually

Taxes

Are taxes charged on this product?	No

Are taxes charged on this product?

Additional Comments

Compulsory savings: <5000 ETB = 15%, <10,000 ETB Loan = 10%, >1 10,000 ETB Loan = 5%. Client deposits monthly the same amount, e.g 15% upfront plus 15% over the term of the loan in monthly installments. Interest savings is compounded semi-annually.

Full Pricing Data

Business Loan - Group samples

	Sample 1	Sample 2	Sample 3	Sample 4
Loan Amount	ETB 1,000	ETB 2,000	ETB 5,000	ETB 5,000
Loan Cycle (1, 2, 3, etc)	Not Known	Not Known	Not Known	Not Known
Disbursement Date	2010-06-22	2010-06-22	2011-07-01	2010-06-21
Loan Term (Months)	6.1 months	6.1 months	3.0 months	12.1 months
Grace Period (Months)	0.0 months	0.0 months	0.0 months	0.0 months
Total Cost of Credit	Not Known	Not Known	Not Known	Not Known
True Price by Comp
Interest and Fee Component	45.6%	45.6%	35.7%	41.4%
Insurance Component	4.2%	4.2%	5.4%	2.2%
Tax Component	0.0%	0.0%	0.0%	0.0%
Deposit Component	6.3%	6.3%	2.1%	5.6%
Full APR (int fee ins tax dep)	56.0%	56.0%	43.2%	49.2%
Transparency Index	36	36	46	41

Original Repayment Schedule	PDF	PDF	PDF	PDF
MFT Pricing Calculation	PDF	PDF	PDF	PDF

Business Loan - Group Price Graphs

Loan Size/Full APR

Loan Term/Full APR

Custom

Click to view Price Analysis Tool

Institution	# Borrowers	Portfolio (US$)	Products	Age of Data
AgroCapital	21,900	16,894,000	11	175
ANED	5,400	6,579,000	3	134
Banco FIE	231,100	569,322,000	6	134
BancoSol	215,300	861,418,000	30	134
CIDRE	8,500	126,578,000	8	134
Coop Fatima	6,300	44,280,000	7	175
CRECER	166,900	134,626,000	13	134
Diaconia	67,000	85,734,000	2	134
Ecofuturo	59,200	226,839,000	5	134
EMPRENDER	8,700	2,380,000	3	175
Fassil FFP	57,600	325,081,000	5	134
FONCRESOL	3,900	9,573,000	3	134
FONDECO	14,200	24,274,000	3	134
Fortaleza	20,100	164,530,000	13	134
FUBODE	29,400	24,444,000	7	134
FUNBODEM	8,600	15,798,000	9	134
IDEPRO	10,400	40,479,000	2	134
IMPRO	2,400	2,885,000	4	134
ProCredit	84,300	257,487,000	8	175
PRODEM	44,900	62,529,000	4	134
ProMujer BOL	115,200	50,753,000	3	134
Sartawi	14,600	26,842,000	8	134

Key Statistics
# Samples:
# Products
# Institutions
# Countries
# Borrowers
Loan Portfolio (USD)
% Products using declining balance
% Products with one or more fee
% Products with one or more insurances
% Products with compulsory deposits

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Total Borrrowers of Samples


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