Presentation on Household Package Program in DECSI

What are the salient features of DECSI's Household Package Program?
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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.