PEACE MFI is engaged in the delivery of both Savings and loan services.
Saving
National Bank of Ethiopia issued a directive in connection with GTP-2 which states the saving amount should be equivalent to the loan outstanding of MFIs in the final year of the Growth Transformation Plan.
Thus, it is high time to focus more on saving mobilization from the general public (voluntary saving) in addition to the existing saving products. Particularly, we need to provide different saving product options that satisfy the interest of clients.
The major objectives of the saving amendment is double fold firs to meet the GTP-2 plan and to fight the loan fund shortage as saving is the best source of fund for lending.
The proposed saving products are amended here under:
1. Mandatory saving- 12% of the loan disbursement before loan disbursement, its deposit interest rate is 7%.
2. Regular Saving – Minimum of Br.30 for first cycle clients and its amount will be increased as clients transferred from one cycle to another cycle. The minimum additional amount shouldn’t be less than Br. 10 for each cycle. Its deposit interest rate is 7% clients are encouraged to deposit more than the minimum deposit amount.
3. Voluntary saving for adult minimum opening balance will be Br. 50; its deposit interest rate is 8%. Clients are encouraged to deposit more than the minimum deposit amount.
4. Lenege Child & youth saving minimum opening balance is Birr 20, deposit interest rate is 8% ( For a child whose age from one day to 24 years old ). Clients are encouraged to deposit more than the minimum deposit. Parents of custodians can bring birth certificate, or evidence of birth from hospital, Clinic or health center.
5. Special purpose saving for children. Deposit for children and youth up to 18 years age, the deposit interest will be 9% annually. This saving is on agreement and will not be withdraw able before the children age reach 18 years. If the deposit is withdraw able before the age of child is 18 years of age the interest rate will be changed to 8%. The minimum account opening amount will be Birr 1000.
6. Box saving . Box will be distributed for potential and able clients to facilitate their daily saving at home. They will get into special agreement with branches to make permanent deposit at their convenient place. The deposit interest rate for this box saving will be 8% per annum.
7. Time deposit: Its opening balance will be Br. 10,000.
· · For a period of six months’ time for Br. 10,000 – 100,000, deposits interest rate will be 8.5% per annum.
· For a period of 12 months’ time for Br. 100,00 – 100,000, deposits interest rate will be 9% per annum.
· F· For a period of six months’ time for Br. 100,001 – 500,000, deposits interest rate will be 9% per annum.
·Fa period of 12 months’ time for Br. 100,001 – 500,000, deposits interest rate will be 10% per annum.
· Fa period of six months’ time for Br. 500,001 up Birr 1000,000, deposits interest rate will be 10% per annum.
For a period of 12 months’ time for Br. 500,001 up Birr 1000,000, deposits interest rate will be 11% per annum.
· For the amount deposited above Br. 1000,000 for the period of 12 months and above, the interest rate will be 12% per annum.
8. Special event saving : It is a saving that will be deposited on regular basis monthly with a fixed amount of money regularly starting from Br.1000. It is a block account for agreed period of time between the client the clients and the Institution. The minimum agreed time will be for six months and the maximum will be agreed with clients.
In this saving type the deposit interest will be calculated 9% per annum on the existing balance which the client deposited.
All borrowers must pay the cost for passbook sales at time of account opening, while all other voluntary and time deposit savers will not require paying at time of opening. However, if savers close their account, the cost of passbook cost must be deducted from their balance.
This above is policy is approved by the Board of Directors to be effective from October 11 , 2017. |
