Micro credit product

What we offer

i.Financial Services

The Microcredit Program offers individual loans of three types:

·         Enterprise loan: to finance the set-up, improvement, or expansion of start-up and existing micro-enterprises. 

·         Home improvement loan: to finance the renovation and refurbishment of microentrepreneurs’ and low-income workers’ homes.

·         Personal loan: to finance personal endeavors of microentrepreneurs and low-income workers, such as their children’s education, the cost of a vehicle to transport them to and from their work, ICT equipment, etc. all with the aim of improving the quality of life of the borrower and his family.

Loan characteristics:

·    Loan size: US$ 500 to $7000, depending on the type of loan and its purpose.

·    Tenor: 6 to 24 months (up to 30 months for agriculture loans)

·    Loan charges: annual interest of 12% flat payable monthly, plus 3% of loan amount payable upfront

·    Repayments: principal and interest are payable monthly

Loan eligibility criteria:

·    Age of borrower: 18 to 62 years

·    Enterprise established for at least 1 year

·    Collateral: at least one co-signatory guarantor who is a public or private sector employee

·    Documents required: Copy of ID, proof of address from Mukhtar, recent salary certificate / pay slip from employer

In 2007 ADR signed a Memorandum of Understanding with LibanPost sal, the private operator of the national postal services in Lebanon, which allows ADR borrowers to make loan payments at LibanPost branches across the country, in addition to ADR’s offices.

ii.Business Development Services

In collaboration with ADR’s Vocational Training Program, and through donor-funded projects ADR offers business development services to its microcredit clients:

·    Microenterprise training, eg. accounting, business management, marketing, communications

·    Education courses, eg. business computer and computer literacy, languages

·    Women empowerment training

 

Loan charges: annual interest of 12% flat payable monthly plus 3% file fees and $10 credit life insurance fee payable upfront.