False – All loans above a certain threshold require credit committee approval as per Vision Fund’s internal control policy. 4. Case Study – Client Assessment Situation: A female client runs a small grain trading business. She requests a 20,000 ETB loan. Her monthly net profit is 3,000 ETB. She has no formal collateral but has been saving 200 ETB/month in a VSLA (Village Savings and Loan Association).
Monthly interest rate = 0.18/12 = 0.015 Loan term = 12 months
[ PMT = \frac10000 \times 0.015 \times (1.015)^12(1.015)^12 - 1 \approx 916.8 , \textETB ]
Based on Vision Fund’s methodology, list three key factors that would support loan approval.
Vision Fund Ethiopia is a licensed microfinance institution and a member of the VisionFund International network , which is part of World Vision International . It provides financial services (credit, savings, micro-insurance) to low-income entrepreneurs, smallholder farmers, and women’s groups across Ethiopia.
~917 ETB per month 3. True/False (Policy) Question: Vision Fund Ethiopia allows loan officers to approve loans above 50,000 ETB without a credit committee meeting.
