Loan Products

Credit Information

The individual microloans granted by DMDI are legal contracts by which the borrowers accept the obligation to pay back to the institution the same amount of money as they received from it, within the time stipulated, and negotiated interest and other administrative fees which may have been agreed. Applications for individual loans shall be evaluated on the basis of the potential client’s capacity to pay and his/her reputation in the community.
The granting of individual microloans will be determined by the following guidelines:

Credit Information

Eligibility for receiving a loan from Diaconia MDI includes:

  1. Must be an established business within the micro and small business sectors with at least one year of business experience;
  2. Must be a business individual working within one of the prescribed business sectors served by Diaconia;
  3. If a consumer loan or personal home financing client, potential clients must have a stable income and must have worked for at least one year in his/her current job.

Selection Criteria

All applicants for loan must fulfill the following necessary conditions:

  1. Be a citizen of Liberia or if a foreigner, have a permanent residence in Liberia for at least three years;
  2. Have a valid Identity Card, preferably, passport, voter’s card, or working ID;
  3. Be at least 18 years old;
  4. Live within a geographical area served by Diaconia;
  5. Fulfil the collateral requirements;
  6. If a legal entity (company), fulfil the following conditions:
    • Have a valid company registration; and
    • Have Tax Identification Number (TIN).

In addition to these general eligibility and selection requirements, there may be additional specific eligibility requirements attached to some of the loan products as contained in appendix 3 of this manual

List of Excluded Business Activities or Individuals

The following business activities/individuals are excluded from receiving loans from Diaconia:

  1. Borrowers or guarantors who have a negative credit history or have failed to repay a past DMDI loan or a loan obtained from other financial institutions; (if there are loans in arrears);
  2. Borrowers who accumulated more than 15 days of default in their last credit history with DMDI.
  3. Production or trade in alcoholic beverages (excluding beer and wine), tobacco, pornography, gambling, casinos, nightclubs, discos, bars, weapons etc. or businesses which utilize child labour on contravention of Liberia legislation on child labour.
  4. Individuals with criminal records;
  5. Individuals who serve in senior management including directors, managers and other senior officers of the DMDI.