Terms and Tariff on Special Credit Facilities for the Diasporas
| Purpose of the loan | Equity Contribution | Tenure of the Loans | Lending Interest Rate (Equity Contribution and Repayment in Foreign Currency) | Lending Interest Rate (Equity Contribution in Foreign Currency and Repayment in Local Currency) |
| • Purchase, Construction, Renovation or Extension of a Residential unit /Apartment or Commercial Building | >20% – 30% | Up to 20 years | Saving Interest Rate + 1.75% | Saving Interest Rate + 6% |
| • To simultaneously purchase and improve/finish a home/building. | >30% – 40% | Up to 20 years | Saving Interest Rate + 1% | Saving Interest Rate + 5.5% |
| • Finish construction of residential house/commercial building | >40% – 50% | Up to 20 years | Saving Interest Rate + 0.5% | Saving Interest Rate + 4.5% |
| • Refinancing of existing mortgage loan/ Buy-out of existing housing loan | > 50% | Up to 25 years | Saving Interest Rate + 0.25% | Saving Interest Rate + 2.5% |
| Purpose of the Loan | Equity Contribution | Tenure of the Loan | Lending Interest Rate (Equity Contribution and Repayment in Foreign Currency) | Lending Interest Rate (Equity Contribution in Foreign Currency and Repayment in Local Currency) |
| Purchase of a brand new or used Personal Automobiles. | Brand New Car: >= 20% | 10 years | Saving Interest Rate + 5% | Saving Interest Rate + 7% |
| •For buy-out of a Car Loan from another bank or financial institution (personal Auto) | Used Car: >= 30% | 7 years | Saving Interest Rate + 5% | Saving Interest Rate + 7% |
| • Purchase of Brand New Commercial – Vehicle (Code 03), like pick up, van etc. | >= 50% | 5 years | Saving Interest Rate + 5% | Saving Interest Rate + 7% |
| Purpose of the Loan | Equity Contribution | Tenure of the Loan | Lending Interest Rate (Partial or Full Repayment in Local Currency) | Lending Interest Rate (Full Repayment in Foreign Currency) |
| Can be for own and /or relative living in Ethiopia. For immediate medical, tuition fee or livelihood needs : domestic or foreign travel, home improvements including the purchase of furniture and appliance; and other big ticket personal expenditure needs. | 10% – 15%* | 5 Years | Saving Interest Rate + 7% | Saving Interest Rate + 5% |
| N.B. For personal loan , the bank may require 10-15% equity contribution depending on the purpose for which the proceed of loan is to be used. Such as home improvements include the purchase of furniture and appliance and the other similar purpose. | ||||
| Purpose of the Loan | Nature of the Loan | Equity Contribution | Tenure of the Loan | Lending Interest Rate (Both Equity and Loan Repayment in Foreign Currency) | Lending Interest Rate (Both Equity and Loan Repayment in Local Currency) |
| For expansion of existing business or new investments/projects in various sectors (Manufacturing, Hotel, Real-Estates, etc.) | Project Financing | Staring from 30% | Up to 15 Years depending on the project cash flow | Saving Interest Rate + 3% | Saving Interest Rate + 6.5% |
| Transport, Construction machineries, Agricultural Equipment | >= 50% | Up to 5 Years | Saving Interest Rate + 5% | Saving Interest Rate + 6.5% | |
| N.B. Grace period shall be considered depending on the nature of the project. | |||||
| If equity contribution is in local currency, project loans shall be treated in the same way as the mortgage loan | |||||
SPECIAL MURABAHA FACILITATES FOR THE DIASPORA
For purchase, construction, renovation or extension of residential unit/apartment or commercial building. To simultaneously purchase and improve/finish home/building. Finish construction of residential house/commercial building. Refinancing of existing mortgage finance/buy-out of existing housing finance.
| Both Equity & repayment In FCY | Equity in FX & Loan Repayment in Local Currency | Loan ( Financing) repayment tenure Period | |
| Equity contribution (20-30%) up to 20 years (all monthly installment) | 14 % 24% 34% 50% 62% 80% 92.5% 112% | 21% 36.5% 53% 79% 98% 127.5% 148.5% 181% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs UP to 12 Yrs UP to 15 Yrs UP to 17 Yrs UP to 20Yrs |
| Equity contribution (31-40%) up to 20 years(all monthly installment) | 13% 21.5% 31% 45.5% 56% 72% 83% 100.5% | 20% 35% 50.5% 75.5% 93.5% 122% 141.5% 172.5% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs UP to 12 Yrs UP to 15 Yrs UP to 17 Yrs UP to 20 Yrs |
| Equity contribution (41-50%) up to 20 years (all monthly installment) | 12 % 20% 29% 42.5% 52% 67% 77% 93% | 18.5 % 32% 46% 68.5% 85% 110% 128% 156% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs UP to 12 Yrs UP to 15 Yrs UP to 17 Yrs UP to 20 Yrs |
| Equity contribution >50% up to 25 years (all monthly installment) | 11.5% 19.5% 28% 41% 50% 64% 74% 89.5% 100.5% 117% | 15% 26% 37% 55% 68% 88% 102% 123% 139% 162% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs UP to 12 Yrs UP to 15 Yrs UP to 17 Yrs UP to 20 Yrs UP to 22 Yrs UP to 25 Yrs |
Purchase of brand new or used personal automobiles For buy out of car finance from another bank of financial institution (Personal auto)
| Brand new car up to 10 years (Equity Contribution ) | 19.5% 33.5% 48% 72% | 23% 39.5% 57.5% 86% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs |
| Used car up to 7 years (Equity Contribution) >/30% | 19.5% 33.5% 48% | 23% 39.5% 57.5% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs |
| Brand new ≥ 50% | 19.50% | 23% | UP to 3 Yrs |
| 33.50% | 39.50% | UP to 5 Yrs |
Murabaha for personal use (Consumer) can be for own and /or relatives living in Ethiopia for immediate medical, tuition fee, or livelihood needs domestic or foregn travel, home improvements, including the purchase of furniture and appliance and other big ticket personal expenditure needs.
Equity contribution ….10% – 15% UP to 5 years | Partial / full Rep in LCY | Full Repayment in FCY | Murabaha Tenure | ||
| 23% | 19.50% | Up to 3 Yrs | |||
| 39% | 33.50% | Up to 5Yrs | |||
Investment project Murabaha Financing For expanstion of existing businessor new investment/project in various sectors (Manufacturing , Hotel Real Estate etc
| Nature of Finance | Equity Contribution | Both Equity and Repay in FCY | Equity in FX & rept in Local Currency | Murabaha Tenure | |
| Project Finance Up to 15 years depending the project cash flow | Starting from 30% | 16% 27.5% 39.5% 58.5% 72% 93.5% | 22% 38% 55% 82.5% 102.5% 133.5% | UP to 3 Yrs UP to 5 Yrs UP to 7 Yrs UP to 10 Yrs UP to 12 Yrs UP to 15 Yrs | |
| Transport construction machineries, Agricultrual Equipment up to 5 years | 50% and above | 19.5% 33.5% | 22.5% 38% | UP to 3 Yrs UP to 5 Yrs |
