Empowerment Micro Finance institution ltd - Salary Backed Loan - MFTransparency.org Truth In Lending Tables

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Institution

Empowerment Micro Finance institution ltd 72, Sikoongo RoadSiavonga, Zambia, Souther ProvinceP.O.BOX 183

Data approved: 2011-12-12

Data version: 1

Age of data: 165 months

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Product

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Product Details

Key Statistics

Outstanding portfolio (ZMK)	ZMK 93,225,090
Portfolio (USD)	USD 18,014.51
Active Clients with Loans	51
Approximate % Female Clients	20% - 40%
Approximate % Urban Clients	60% - 80%

Methodology

Individual	x
Solidarity group
Village banking
Self help group
Other

Description

This loan is paid by installment due by the client through a deduction from his/her payslip. The interest rate for this product is lower than the one foreseen for Individual loans. Collateral are still required.

Loan Purpose

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

Included Services

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

Eligibility

Men	x
Women	x
Must run a business
Must own a home or land
Must be a salaried worker	x
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	ZMK
Minimum loan size	ZMK 500,000
Maximum loan size	7,000,000

Loan Term and Grace Period

Shortest loan term	2.0 months
Longest loan term	10.0 months
Approx average	6.0 months

Grace Period

Grace period usage	10%
Average grace period	0.5 months

Repayment Frequency

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

Pricing Information

Interest

Lowest quoted nominal interest	30.00%
Highest quoted nominal interest	42.00%
Reason(s) why interest rate varies	The interest rate can vary between 30% and 42% depending on the number of employees within the company that can access the loan. The past performances of the employer in term of creditwortiness are also considered
Interest rate period	Yearly
Interest Rate Calculation Method	Flat
Subsidized by funder request?	No
Is rate fixed for entire loan term	Yes

Upfront Fees

	Fee 1
Description	Application Fee
% of loan amount - min	0
% of loan amount - max	0
OR, Fixed amount - min	10,000
Fixed amount - max	10,000
Reason for variation	N/A
Appears on Repayment Sched?	No

Ongoing Fees

This product has no ongoing fees

Upfront Insurance Fees

This product has no upfront insurance fees

Ongoing Insurance Fees

This product has no ongoing insurance fees

Compulsory Deposit

Required for	Never
Criteria	N/A
Is deposit indicated on the repayment schedule?	N/A
Do borrowers control deposit in their group?	N/A

Deposit BEFORE or AT Disbursement

% loan amount deposited	N/A
or, Fixed-amount deposited	N/A

Deposits DURING period payments

% loan amount deposited	N/A
or, Fixed-amount deposited	N/A
Conditions on access to deposit	N/A

Interest Paid on Deposit

Minimum interest rate paid	N/A
Maximum interest rate paid	N/A
Interest payment frequency	N/A

Taxes

Are taxes charged on this product?	No

Are taxes charged on this product?

Full Pricing Data

Salary Backed Loan samples

	Sample 1	Sample 2	Sample 3	Sample 4
Loan Amount	ZMK 1,200,000	ZMK 3,000,000	ZMK 3,000,000	ZMK 4,000,000
Loan Cycle (1, 2, 3, etc)	Not Known	Not Known	Not Known	Not Known
Disbursement Date	2010-11-18	2010-11-18	2010-11-18	2010-11-24
Loan Term (Months)	7.0 months	12.0 months	12.0 months	12.0 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	50.6%	50.3%	50.3%	48.9%
Insurance Component	0.0%	0.0%	0.0%	0.0%
Tax Component	0.0%	0.0%	0.0%	0.0%
Deposit Component	0.0%	0.0%	0.0%	0.0%
Full APR (int fee ins tax dep)	50.6%	50.3%	50.3%	48.9%
Transparency Index	59	60	60	61

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

Salary Backed Loan Price Graphs

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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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