Diaspora Special Credit Facilities

The Bank offers a tailor-made credit arrangement for diaspora community including Mortgage, Car loan, and Personal/Consumer loans and for selected productive project financing.

1. Mortgage/Home Loans

The Mortgage is a secured Long-Term Loans that allow Diasporas to purchase real estate and homes in Ethiopia. The loan product is available to eligible Diasporas with verifiable and steady income flows.

No	Schemes	Description of Scheme and Guidelines
	Purpose of Loan	Purchase of residential house, a residential unit / apartment, condominium unit or commercial building Construction, renovation or extension of a residential unit / apartment or commercial building To simultaneously purchase and improve a home/building. Finish construction of residential house/commercial building Refinancing of existing mortgage loan/ Take-out of existing housing loan from another bank Building can be either residential or for commercial purpose
	Target Market and Eligibility	Non-resident Ethiopian Nationals living and working outside Ethiopia for more than one year who can produce authenticated documents. Non-resident foreign nationals of Ethiopian origin. Companies owned by the above-mentioned nonresidents and located in Ethiopia Debtors who are the capacity and willingness to service the loan in foreign currency.
	Loan Amount	The amount of loan is determined by the repayment capacity of the borrower as evidenced by his income and the cost of the home/building to be purchased/constructed and related collateral. The Bank may decide on the minimum and maximum amount of the loan apart from these conditions.
	Repayment Frequency	Monthly installment frequency for purchased home and monthly or quarterly installment buildings under construction, as required.
	Joint Application	Inclusion of spouse as a co-applicant may enable the primary applicant to take a higher loan amount.
	Loan Security	The loan will be secured by the house or building purchased/constructed. The Bank may require or accept other collaterals in addition to the house Collateral (s) shall be registered in the name of the Bank on first degree basis for the total loan amount.
	Required Documents	The Application letter has to accompany the following documents: loan application form Copy of Sale Agreement with the seller of the house/building. Copy of title deed Valuation Certificate from approved valuator of a house, if valuation is outsourced. Application forms properly filled and signed by the applicant. For individuals of Ethiopians or foreign nationals of Ethiopian origin, valid passport and/or identification card. For businesses, Certificates of ownership entitlement for the organization and/or Articles and Memorandum of Association, etc.
	Bank Account	Bank statement as proof for deposit of equity contribution
	Fees and Charges	As per the prevailing Terms and Tariff Guidelines of the Bank
	Property Estimation and Related Fees	As per the prevailing Property Estimation Policy of the Bank, and Terms and tariff thereon.

2. Personal/Consumer Loans

Personal/Consumer loans are collateral based term loans granted for the purpose of covering certain urgent financial requirements of the applicant.

No	Schemes	Description of Scheme and Guidelines
1.	Purpose of Loan	Help finance Clients’ immediate medical, educational, or livelihood needs; domestic or foreign travel, minor home improvements including the purchase of furniture and appliances; and other big ticket expenditure needs For own and relatives living in Ethiopia for Medical, tuition fee, purchasing household equipment and other big ticket personnel cases per the invoice value presented directly payable to the respective supplier.
2.	Target Market and Eligibility	Non-resident Ethiopian Nationals living and working outside Ethiopia. Non-resident foreign nationals of Ethiopian origin. Companies owned by the above-mentioned nonresidents and located outside the Ethiopian territory for more than one year. Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents. The debtor shall be willing to service the loan in foreign currency to be eligible for the proposed lower interest rate. Others as indicated in the policy or as required by the Bank
3.	Loan Amount	the Minimum and Maximum loan amount will be determined by the Bank based on the repayment capacity of the borrower and quality & value of the security

3. Auto Loans

No	Schemes	Description of Scheme and Guidelines
1	Feature	The loan is sanctioned as Term Loan The Bank may require the client to purchase the car from approved vendors, if it deems important.
2	Purpose	Extended for the purchase of a brand new or used personal automobiles. For taking over of a Car Loan from another bank or financial institution
3	Benefits	Allows customers to channel funds that would have been expended on vehicle purchase to other commitments Flexible credit facility that allows clients to go for a brand new car or used car as they wish. Attractive rate with flexible collateral and repayment plan Fast approval time
4	Target Market and Eligibility	Non-resident Ethiopian Nationals living and working outside Ethiopia. Non-resident foreign nationals of Ethiopian origin. Companies owned by the above-mentioned nonresidents and located outside the Ethiopian territory for more than one year. Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents. Others as indicated in the policy or required by the Bank
5	Amount of Loan	The amount of loan is determined by the income of the borrower and the cost of the vehicle proposed to be purchased.
6	Collateral	These loans are secured by putting a lien on the vehicle being purchased. The Bank may require additional collateral if it believes that the risk thereon may possibly endanger its interest.
7	Repayment Frequency	The repayment is allowed by way of monthly installments or at other agreed installment frequency.
8	Documentation Requirements	Auto Loan Application forms properly filled and signed by the applicant. For individuals of Ethiopians or foreign nationals of Ethiopian origin, valid passport and/or identification card. For businesses, Certificates of ownership entitlement for the organization and/or Articles and Memorandum of Association. Proforma Invoice or quotation from the dealer / acceptable or approved vendors Copy of Sale Agreement with the seller in case of a used car. Proof of marital status. Others as indicated in the policy and required by the Bank
9	Warranty and Insurance	The vehicle needs to be comprehensively insured throughout the term of the loan. The vehicle must have a current Warrant of Fitness and Registration at the time of purchase, if it is new.

4. Investment Financing

The Bank offers Investment credit facility to enhance the potential of Diasporas to develop larger, more productive businesses investment in meaningful programs in their home country that can create jobs and economic growth back home.

No	Schemes	Description of Scheme and Guidelines
1	Feature	Term loans for financing of projects such as manufacturing or purchase of capital assets.
2	Purpose	For expansion of existing business or new investments in various sectors (Manufacturing, hotel, construction and real state, transport, etc.)
3	Benefits	Attractive rate with flexible repayment plan with a grace period Short approval time
4	Target Market and Eligibility	Non-resident Ethiopian Nationals living and working outside Ethiopia. Non-resident foreign nationals of Ethiopian origin. Companies owned by the above-mentioned nonresidents and located outside the Ethiopian territory for more than one year. Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents.
5	Amount of Loan	The amount of loan is determined by the projected cash flow and income of the borrower and the cost of the project.
6	Collateral	These loans are secured by putting a lien on the project in progress including the margin deposits or In addition, the Bank may require additional collateral in the form of buildings or other movable properties.
7	Tenure of the Loan	Flexible Depending on the nature and type of investment
8	Repayment Frequency	The repayment is allowed by way of monthly installments or at other agreed installment frequency such quarterly, half yearly.
9	Documentation Requirements	Investment Loan Application forms properly filled and signed by the applicant. For individuals of Ethiopians or foreign nationals of Ethiopian origin, valid passport and/or identification card. Valid Work Permit from country of assignment, periodic income and other relevant documents For businesses, Certificates of ownership entitlement for the organization and/or Articles and Memorandum of Association. Feasibility study/ business plan Proforma Invoice or quotation from the dealer / acceptable or approved vendors if the loan is for the purchase of Machinery/Equipment Proof of marital status.
10	Warranty and Insurance	The project or investment property needs to be comprehensively insured throughout the term of the loan. The machinery/equipment must have a current Warrant of Fitness and Registration at the time of purchase.