Consumer Loan
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 amount | Not set | |
| Maximum loan amount | 90% 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 Currency | ETB | ||
|
Re-Payment mode |
DB Prime | ETB | |
| DB-Star | FCY/ETB | ||
| Diaspora | FCY/ETB | ||
|
Maturity/Tenure |
DB-Prime (Employees with FCY/export transactions) | 20 years | |
| DB-Star (Employees of EOG with Diplomatic Status) | 20 years | ||
| Diaspora | 20 years | ||
| Grace period | No-grace period | ||
Eligibility Requirements
|
Basic Eligibility [Requirements] |
For Diaspora | For 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, |
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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, |
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| Residence and/or work permit | ||
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Renewed passport for non-resident Ethiopians or renewed passport and yellow card for foreigners of Ethiopian origin. |
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| 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; | ||
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If the applicant is a business person s/he shall present:- |
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| Specific Collateral Requirements | The property to be built/bought | |
| Parallel loans | Retail-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 Currency | ETB | ||
|
Re-Payment mode |
DB Prime | ETB | |
| DB-Star | FCY/ETB | ||
| Diaspora | FCY/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 | ||
| Diaspora | 5 years for old and 8 years for new cars | ||
| Grace period | No-grace period | ||
Eligibility Requirements
|
Basic Eligibility [Requirements] |
For Diaspora | For 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 Requirements | The car to be bought | |
| Parallel loans | Retail-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 amount | 90% 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/Tenure | Maximum of 5 years, including the grace period (if any) | |
| Grace period | Up 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 | ||
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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 |
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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] |
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| Specific Eligibility Requirements | The 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 party | The 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 amount | Not set |
| Maximum loan amount | ETB 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 Propositions | Finances 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,
