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Mortgage Loan

Is a term loan for Individuals (non-business) customers to finance the purchase/building of residential house.

Product Features
Amount range (Values)Minimum loan amountNot set
Maximum loan amount90% of the cost of the house or construction

 

Features

No additional collateral required
Long repayment period
Customers allowed to borrow up to 50% of their salary capacity up on consent
Preferential interest rate for those generating FCY for the Bank
Transaction CurrencyETB

 

Re-Payment mode

DB PrimeETB
DB-StarFCY/ETB
DiasporaFCY/ETB

 

Maturity/Tenure

DB-Prime (Employees with FCY/export transactions)20 years
DB-Star (Employees of EOG with Diplomatic Status)20 years
Diaspora20 years
Grace periodNo-grace period
Eligibility Requirements

Basic Eligibility [Requirements]

For DiasporaFor others

The applicant shall open Diaspora Mortgage Savings account and save the equity contribution before or after loan decision.

One half (50%) of the salary of the applicant as well as that of the applicant’s spouse can be considered, but up to salary of the applicant,

The applicant shall raise his/her equity contribution in foreign currency.

Interest rate applicable to an individual will be changed to normal rate if the staff leaves the employing entities

The applicant shall write underaking letter to effect the monthly loan repayment in foreign currency (USD, GBP and Euro) at the time of loan application.

Required contractually to service their consumer loans fully in FCY to qualify for interest discount,

Residence and/or work permit

Renewed passport for non-resident Ethiopians or renewed passport and yellow card for foreigners of Ethiopian origin.

Marriage certificate or singleness.
Employment letter showing annual gross and net income from employer or individual tax return; (Optional)
Bank account statement for at least one year from foreign bank;

If the applicant is a business person s/he shall present:-
– Financial statement for at least three consecutive years
– Renewed trade license and trade registration certificate
– Certificate for payment of Tax.
– TIN certificate
– Tax Clearance Confirmation letter

Specific Collateral RequirementsThe property to be built/bought
Parallel loansRetail-Car Loan
Retail-Personal Loan

 

Car Loan

It is a personal term loan extended for individual customers to finance the purchase of personal car.

Product Features
Amount range (Values)Maximum loan amount (new car)80% of the cost
Maximum loan amount (old car)85% of the cost

 

Target Customer Segments

More caters to the Retail Sub-Segment
DB-Prime (Employees of firms with FCY/export transactions)
DB-Star (Employees of EOG with Diplomatic Status)
Diaspora

 

Features/Value Propositions

No additional collateral required
Long repayment period
Customers allowed to borrow up to 50% of their salary capacity up on consent
Preferential interest rate for those generating FCY for the Bank
Transaction CurrencyETB

 

Re-Payment mode

DB PrimeETB
DB-StarFCY/ETB
DiasporaFCY/ETB

 

 

Maturity/Tenure

DB-Prime (Employees with FCY/export transactions)5 years for old and 8 years for new cars
DB-Star (Employees of EOG with Diplomatic Status)5 years for old and 8 years for new cars
Diaspora5 years for old and 8 years for new cars
Grace periodNo-grace period

 

Eligibility Requirements

Basic Eligibility [Requirements]

For DiasporaFor others

 

The applicant shall open Diaspora Mortgage Savings account and save the equity contribution before or after loan decision.

One half (50%) of the salary of the applicant as well as that of the applicant’s spouse can be considered, but up to salary of the applicant,

The applicant shall raise his/her equity contribution in foreign currency.

Interest rate applicable to an individual will be changed to normal rate if the staff leaves the employing entities.
The applicant shall write undertaking letter to effect the monthly loan repayment in foreign currency (USD, GBP and Euro) at the time of loan application.

Required contractually to service their consumer loans fully in FCY to qualify for interest discount,

Residence and/or work permit

Renewed passport for non-resident Ethiopians or renewed passport and yellow card for foreigners of Ethiopian origin.

Marriage certificate or singleness.
Employment letter showing annual gross and net income from employer or individual tax return; (Optional)
Bank account statement for at least one year from foreign bank;

If the applicant is a business person s/he shall present:-

Specific Collateral RequirementsThe car to be bought
Parallel loansRetail-Mortgage Loan

 

 

 

Student Loan

A term loan granted for students of Ethiopian nationals who want to pursue their tertiary education; including tuition fees, purchase of school materials and other expenses required to complete the study.

Product Features
Amount range (Values)Maximum loan amount90% of the cost of learning

Features

Initial deposit of Birr 50 and above
Stand-alone term loan product
At least 10% contribution by the student towards the total cost
Maximum of 5 years repayment period [including grace period]
Co-signor, Personal guarantor, Provident Fund A/C or tangible collateral accepted as security for the loan

Special Benefit

No requirement for prior and mandatory savings
6 month grace period for repayment for unemployed
Minimal contribution by students as low as 10% of the cost
Cost sharing settlement [as the case may be]
Maturity/TenureMaximum of 5 years, including the grace period (if any)
Grace periodUp to 6 months

 

Eligibility Requirements
Basic Eligibility [Requirements]Should present valid ID and open a student account
Should deposit his/her contribution in to his/her student account
The student should be able to provide collateral/co-signor/personal guarantor
Similar requirement shall be applicable for those customers other than those stated under Credit Analysis and Appraisal Procedure Manual (October 2019) Section 7.1.6.1 to 7.1.6.4

For accessing the loan, the student should fulfill those requirements stipulated in Credit Analysis and Appraisal Procedure Manual [Chapter 7: Consumer Loan to External Customers] from section 7.1.6.1 to 7.1.6.4

The amount of loan to be granted vis-à-vis the value of collaterals presented shall be determined in line with the Credit Analysis and Appraisal Procedure Manual [Chapter 10: Collateral Valuation and Assessment]

Specific Eligibility RequirementsThe student should present acceptance letter from the partner University/College
The student should be able to provide collateral/co-signor/personal guarantor
The Bank may consider cash and cash substitute as collateral [e.g. provident fund account, shares of banks and insurance companies] of the student or third partyThe P/F account should be maintained with Dashen Bank
The employer should formally authorize the Bank to block and held the P/F account as collateral for the loan

 

Personal Loan

It’s a personal loan for individual (non-business) customers to finance the purchase of household equipment and home supplies

Product Features
Amount range (Values)Minimum loan amountNot set
Maximum loan amountETB 500,000

Target Customer Segments

Caters more to the following Retail Sub-Segment
DB-Prime (Employees with FCY/export transactions)
DB-Star (Employees of EOG with Diplomatic Status)
Diaspora
Features/Value PropositionsFinances the purchase of household equipment and home supplies
Covers other personal expenses as validated by the Bank
Preferential interest rate for those generating FCY for the Bank

 

 

 

 

 

 

 

 

Eligibility Requirements
  • One half (50%) of the salary of the applicant as well as that of the applicant’s spouse can be considered, but up to salary of the applicant,
  • Interest rate applicable to an individual will be changed to normal rate if the staff leaves the
    employing entities
  • Required contractually to service their consumer loans fully in FCY to qualify for interest discount,
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