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

  1.  

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
  1.  

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.
  1.  

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.
  1.  

Repayment Frequency

  • Monthly installment frequency for purchased home and monthly or quarterly installment buildings under construction, as required.
  1.  

Joint Application

  • Inclusion of spouse as a co-applicant may enable the primary applicant to take a higher loan amount.
  1.  

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.
  1.  

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.
  1.  

Bank Account

  • Bank statement as proof for deposit of equity contribution
  1.  

Fees and Charges

  • As per the prevailing Terms and Tariff Guidelines of the Bank
  1.  

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.

 

 

For more information

Awash Towers, Right Side
Tel: 8980 |  +251115570167
P.O.Box: 12638
Email: contactcenter@web.awashbank.com
Web: www.web.awashbank.com

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