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.