Terms and Tariff on Special Credit Facilities for the Diasporas
| Purpose of the loan | Equity Contribution | Tenure of the Loans | Lending Interest rate in foreign Currency (Equity Cont. and Repayment in Foreign Currency) | Lending Interest rate in foreign Currency (Equity Cont. in FCY and Repayment in LCY) |
| • 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 Loans | Equity Cont. and Repayment in Foreign Currency | Equity Cont. in FCY and Repayment in LCY |
| 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 | Parial/Full Repayment in LCY | Full Repayment in FCY |
| 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 IR Plus 7% | Saving IR plus 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 | Both Equity & Loan Repayment in FCY | Both Contribution in FCY and Repayment in LCY | |
| • 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 the project cash flow | Saving IR Plus 3% | Saving IR Plus 6.5% | |
| Transport, Construction machineries, Agricultural Equipment | 50% and above | Up to 5 years | Saving +5% | Saving IR + 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 |
