Presentation on Household Package Program in DECSI
This presentation discusses the Household Package Program undertaken by DECSI, Ethiopia. It states that the objectives of the Household Package Loans are to:
- Ensure food security at household level on sustainable basis through the provision of adequate and efficient financial services;
- Increase and diversify income of households and boosting of agricultural production and productivity.
The presentation highlights the salient features of Household Package Loans:
- Loans are given in packages;
- Only feasible projects are eligible for loans;
- Components differ from one agro-ecological zone to the other;
- An individual can run more than two activities at a time.
It further discusses:
- The lending methodology:
- Loans given on individual basis;
- Loan given to the head of the household.
- Interest rate: 9% - declining balance method.
- Collateral arrangements:
- Government gives a guarantee to local banks;
- DECSI provides the whole cycle of loan services.
- Loan period:
- Depends on the type and nature of the activities;
- Ranges from two to four years.
Finally the presentation lists out the achievements under the Household Package Loans:
- DECSI has managed to reach 294,235 households in two years;
- Farmers have welcomed the new program with great interest;
- Some farmers have started to generate good income from their projects;
- Most farmers have started paying their current installments.