Paper

Presentation on Household Package Program in DECSI

What are the salient features of DECSI's Household Package Program?
Download 14 pages

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.