Core Financing Principles

Asset-Backed

We provide the actual goods, vehicles, or property you need—never direct cash loans.

Risk Sharing

The cooperative and the member share the risks associated with trade and investment.

Transparency

Total cost and our profit margin are explicitly disclosed before you sign any contract.

Eligibility & Requirements

  • Membership: Registered and active for at least 6 months.
  • Saving Record: Uninterrupted monthly compulsory savings.
  • Pre-Saving: Must have 20% to 50% of financing amount saved.
  • Documents: Valid ID, TIN, and proof of stable income (Salary/Business).

Annualized Profit Margins

Up to 2 Years: 12.5% - 14.0%
2 to 4 Years: 14.0% - 15.0%
5 Years: 15.5%
Financing Type Ceiling (Max Limit) Pre-Saving Required Max Term
Social / Personal400,000 ETB20% (15% Save / 5% Share)4 Years
Business Expansion2,000,000 ETB25% (15% Save / 10% Share)6 Years
Vehicle (Car)3,000,000 ETB30% (20% Save / 10% Share)10 Years
Housing (Purchase)4,000,000 ETB30% (20% Save / 10% Share)10 Years
Emergency (Health)400,000 ETBBased on Loan Size2 Years
Special Car/House3,000,000 ETB50% (35% Save / 15% Share)10 Years

Comprehensive Loan Products

Social and Economic Loan

Financial support for personal social responsibilities and individual economic stabilization.

Car Purchase Loan

Standard financing for the acquisition of private or commercial vehicles.

Home Purchase, Construction and Renovation

Comprehensive funding for buying a house, building a new property, or renovating existing homes.

Business Startup and Expansion Loan

Capital injection to help members launch new ventures or grow their existing businesses.

Newlyweds Household Loan

Specifically designed for newly married couples to purchase household essentials and establish their home.

Special Welfare Loans

  • Loans for Women and People with Disabilities.
  • Mobile Phone Purchase Loans.
  • Muday low-income startup loans up to 100,000 ETB.
  • Special 50% Pre-Saving Car Purchase Loan.

EV Battery Replacement Loan

Financing for electric vehicle maintenance and battery replacement.

  • Loan Limit: Up to 500,000 ETB.

Emergency Education and Medical Loan

  • Interest Rate: 13.5%
  • Repayment Period: Up to 2 Years
  • Maximum Amount: 400,000 ETB
  • Guarantee: Property Collateral Required

Children’s School Fee Loan

  • Interest Rate: 12.5%
  • Repayment Period: 1 Year
  • Maximum Amount: 100,000 ETB

Security & Collateral

  • Savings: Borrow up to 95% of your savings instantly.
  • Salary: Permanent employee guarantee accepted up to 400k ETB.
  • Assets: Car titles (up to 15 yrs old) or House Title Deeds.
  • Insurance: All assets must have comprehensive insurance.

The Application Process

1
Submission

Submit application and business plan.

2
Verification

Credit dept. verifies savings & collateral.

3
Approval

Board reviews and approves financing.

4
Procurement

Committee verifies price & existence of asset.

5
Disbursement

Payment made to seller; asset handed to you.

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