Afar Micro Finance Institute S.C

Murabaha financing for MSE &individual

 ATTRIBUTES OF MSE/INDIVIUAL MURHABHA FINANCING

1.SMALL ENTERPRISE 

A)Fattening,  Milk Animal Livestock fattening, livestock trading Diary product, Poultry products Grain & cereal trading ,Fruit and vegetable trading

B)Promoting and supporting small business , Shop financing ,trade , service ,Tailoring, Hair dressing& barberry, Maintenance of electronic equipment, shoes Butchery, Restaurants, cafeterias, Butchery, Restaurants, cafeterias, Trading of ready made& cultural cloth, shoes &household utensils

 Loan size: from birr 10,000.00-  the maximum loan size based on the directive of NBE

 Loan period : 18months it can be term loan or installment based on the nature of the business

Mark up :20% cost plus mark-up per loan term

 Grace period:There is no grace period ..

 Fees/Service: charges Non-refundable 100Birr is also compulsory for first time indvidual borrowers as    membership fee& 250 Birr for MSE cooperative

No membership fee is required to qualify for continuous repeat loans. However, if the client readmitted after quitting membership for more than one year he/she will be subjected to pay membership fee

Takaful :no takaful

Penalty

Penalty Impose penalty for delinquency problem to go to charity( Donation to charity in case of deliberate default).

savings.

Up front saving 20% of the deal
All borrowers will be required to deposit  regular  mandatory saving of 2% of the gross loan every month.
 
 
 

OTHER PURCHASES for agriculture ,manufacturing and construction

small Machines ,tools , Raw material  ,Inventory, Equipment , Vehicle financing

Loan size: from birr 10,000.00-  the maximum loan size based on the directive of NBE
Loan period : 24months it can be term loan or installment based on the nature of the business 
Mark up :25% cost plus mark-up per loan term
Grace period:There is no grace period .
Fees/Service: charges Non-refundable 100Birr is also compulsory for first time individual borrowers as    membership fee& 250 Birr for MSE cooperative
No membership fee is required to qualify for continuous repeat loans. However, if the client readmitted after quitting membership for more than one year he/she will be subjected to pay membership fee
Takaful :no takaful
Penalty
Penalty Impose penalty for delinquency problem to go to charity( Donation to charity in case of deliberate default).

savings.

Up front saving 20% of the deal
All borrowers will be required to deposit a regular  mandatory saving of 2% of the gross loan every