PRODUCTS AND SERVICES

AVMF is currently providing loans, saving, micro-insurance and digital banking products to the public.

a) Major Loan Products

ü  Women Entrepreneur loan

Entrepreneur Loan is a loan provided to women entrepreneurs for taking up business ventures, small business like home based catering, beauty salons, etc.  Existing business ventures will also be eligible under the scheme for expansion, modernization and diversification.

ü  SME loan or Micro Business loan

Business Loan is given to micro enterprise operators that are engaged in production, service or commercial type business activities that generate regular cash flow. Small Medium Enterprises (SME) are business loans extended only to licensed enterprises. These loans are tailor-made to suit the needs and requirements of SMEs and usually require collateral.

ü  Agri-Business Loan

These types of loans are requested by clients of Solidarity Group (SG) members engaged in agri-business. Who agree to secure either individual or joint guarantee to the loan. It is provided to clients engaged in agriculture related trading activities, Agri-processing, cattle fattening, irrigation activities.

ü  Consumption Loan

A consumer loan is a credit type offered to customers to aid them in financing only specific expenditures. Consumer loans are mortgages, auto loans, education loans, refinance loans, home equity loans, and personal loans.

ü  Individual Business loan

Individual Lending is the process of providing loan to one client, thereby not requiring other group members to serve as guarantors, but rather to base loan eligibility on a client character assessment and cash flow analysis.

ü  Solar or Energy loan

This solar loan product is provided for the purchase of solar panel system or devices or renewable energy sources for homeowners.

ü  Climate financing Loan 

 Is a loan provided for the purchase of electrical vehicle, solar equipment, and other products that are directly related to carbon emission.

ü  Agri-Business Loan

ü  Water loan

Water loan is provided for the purchase of water filters and water tankers. Water loan is also provided for the construction, development, rehabilitation and maintenance of water sources (Boreholes, hand dug wells, shallow wells, springs and rain water harvest facilities). Water loan is also provided for cost associated with house hold water connection. The Loan is provided for both individual and group customers. 

ü  Asset Acquisition loan

It is provided for the acquisition equipment, real estate, or working capital paid off. A small business often uses the cash from a term loan to purchase fixed assets, such as equipment or a new building for its production process.

ü  Equipment Leasing Finance

It is a long-term legal agreement that allows the company to use the equipment for business during the tenure of the lease agreement. Under the equipment lease financing agreement, the business owner must pay a monthly fee to the lender, who purchases or owns the equipment.

ü  Motor Vehicle purchase Loan

A Motor Vehicle Loan is a term loan granted for the purchase of new motor vehicles. The loan does not, however, include the cost of spare parts or luxury items.

ü  Improved Cook stove Loan

It is a loan product that targets providing improved cook stove devices for our clients.

ü  Education Loan

Education loan is strictly designed for the payment of educational related expenses only. It is aimed at Primary, Secondary and University level. For the university/tertiary institution this loan can be accessed by a client who is a working class with an income or monthly salary.

ü  Manufacturing

A machinery loan is a credit facility that helps borrower to buy, lease, repair or upgrade machinery.

ü  Construction loan

 A construction loan is a short-term loan provided to finance the building of a home or another real estate project. Construction loans are usually taken out by builders or a homebuyer custom-building their own home.

ü  Asbeza Loan

It is a type of loan requested by borrower to enable the lender to make order from one supplier of supermarket at a time. Or it is the loan the company acts as an intermediary in the immediate delivery of the products from grocery shopping and home delivery.

b)    Saving Products

Ø  Compulsory Saving

Compulsory saving is the minimum amount of saving, which conditions borrowers` access to loans, and can be seen as a collateral substitute imposing a positive inducement for repayment.

Ø  Ordinary Voluntary Savings

This is a normal saving with attractive interest rate for any clients.

Ø  Special Growth Group Saving

This is a group based saving type that all group members should save a predefined amount of saving time by time.

Ø  Institutional Savings

Ø  Institutional Savings Accounts are tailor-made to suit the specific needs of institutions such as NGOs, clubs, associations, educational institutes, hospitals, Idir, Iqub savings and other Trusts.

Ø  Fixed Time deposit or Money Market Deposit

Fixed time deposit is a type of deposit which is accepted for a certain fixed period of time with negotiable interest rate. The rates of interest vary according to the duration of the deposit received and calculated only for the duration of the certificate of deposit.

Ø  Youth Saving

Youth accounts are savings accounts and checking accounts designed for children. They often require a much lower deposit to open than an adult's account, they have great interest rates, and also fewer fees.

Ø  Women Saving

This is Special Savings Account designed specifically to take care of and address the banking and savings needs of the Women customers to play an essential part of every women’s life, regardless of their financial position.

Ø  Coin Box Saving

A money box is a small box with an opening at the top, into which a child or petty traders puts coins as a way of saving money.

Ø  Asset Acquisition fund saving

This type of saving is designed to acquire assets to allow the company to expand its product lines or offerings or to purchase equipment etc.   

c)     Digital Channels

Digital channels increase the customer satisfaction and product conversion rate. Digital channels decrease the OPEX for the banks. Since the customers are using the digital channels for daily banking transactions and buying simple products, branch personnel finds more time for more value added advisory services

ü  Mobile Banking.

Another popular type of digital banking is mobile banking. Account holders download the bank application on their mobile. All bank services like balance enquiries, payments etc. can be accessed from smartphones.

ü  Digital Wallet

Mobile wallets are the digital version of a wallet that enables the user to make different types of digital payments online. Digital wallet stores money added by the user linked to their bank account. Safe amongst all digital payment methods, this can be used for all transactions through an app installed on the smartphone and an internet connection.