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Conventional Diaspora Banking Products & Services

Dashen Bank (coined from the highest peak in Ethiopia, Mount Dashen), aspires to provide efficient and customer centric banking services to its customers. Headquartered in Addis Ababa, the Bank is one of the largest private banks in Ethiopia; currently operating through a network of more than 500+ branches16 dedicated Forex windows and 9 Forex bureaus, more than 400+ATMs and over 1400+ point-of-sale (POS) terminals spread across the country. Dashen Bank maintains correspondent banking relationships with 462 banks in 70 countries and 170 cities across the world, making it a chosen bank.

Our Bank is implementing its 5-year strategic plan that will enable the bank “To be Best in Class Bank in Africa” by expanding the quality and accessibility of its services to its customers.

A Diaspora Banking division is established under the Bank’s Retail and MSME Banking Office to monitor the services of the Diaspora with affordable product value propositions.

Dashen Bank provides the following banking services for the Diaspora:

1. Foreign currency deposit accounts:
2. Diaspora Consumer loan (Auto, mortgage and personal loan) checking list
  • The applicant shall open Diaspora Mortgage saving account and save the equity contribution before or After the loan decision
  • The applicant shall be eligible to Diaspora financing arrangement if he /she ensures availability of sustainable source of income for the loan repayment from the foreign employment or business
  • One half (50%) of the income of the applicant can be considered, in determining borrowing and repayment capacity.
  • The Applicant shall submit the following documents at time of loan processing
    – The applicant shall raise his/her equity contribution in foreign currency or local currency
    – Residence or work permits (Mandatory only for those Ethiopians who live abroad but having Ethiopian Passport).
    – Renewed passport for non-resident Ethiopian or renewed and yellow card for foreigners of Ethiopian Origin
    – One passport size photo
    – Marriage certificate or singleness
    – Bank account statement for foreign sources (Optional)
    – Tax return (Optional)
    – If deemed necessary, power of attorney and copy of ID/ Passport
    – Employment letter showing annual gross and net income from employer or individual tax return
    – Copy of employment contract (If applicable)
    – If the applicant is a business person she/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 by applicant and spouse (if Married)
    – Tax clearance confirmation letter from the concerned office on fulfillment of tax obligation of both the borrower and mortgagers and their spouse, if any valid for six months from the date of application
  Interest Rate
 Type of loan Equity and loan repayment in FCY Equity in FCY  and loan repayment in LCY Equity LCY and loan repayment in FCY
Contribution 10% 20% 30% 40% >=50% and <70% >=70 % 10% 20% 30% 40% >=50% and <70% >=70% 10% 20% 30% 40% >=50% and <70% >=70%
Mortgage Loan 10.5 10 9.5 8.5 7.5 7 13 12.5 12 11.5 10.5 10 11 11.5 12 12.5 13 13.5
car Loan NA 10.5 10 9.5 8.5 7 NA 13 12.5 12 11 10 NA 12 12.5 13 13.5 13.75
Personal Loan 10.5 10 9.5 8.5 7.5 7 13 12.5 12 11.5 10.5 10 11 11.5 12 12.5 13 13.5
  Equity and loan repayment in FCY-30% and above Equity in FCY  and loan repayment in LCY-30% and above Equity LCY and loan repayment in FCY- 30% and above
Investment 8% 9% 8.5 %
  Loan Term
Mortgage Loan 20 years
Car Loan 8 years for new and 5 years for used Vehicles
Personal Loan 4 years
Investment maximum 15 years

 

3. Issuing International Debit Card

Eligible customers and accounts

  • All foreign currency saving account holders does have access to their account to the tune of 10% of the available balance without any approval.
  • All other customers shall have access to FCY amount approved as travel allowance in line with NBE’s pertinent Directives upon presentation of the following travel documents:
    – Present valid passport
    – Present valid Visa
    – Present valid air ticket
  • In the case of accounts operated by power of attorney, the agent can apply for a card on behalf of the Principal if and only if the power of attorney agreement explicitly states that the agent can apply and operate the account through a debit card.
  • In the case of a PLC accounts, the card is prepared only if the PLC account has a sole signatory. The card shall be prepared in the name of the Signatory (usually the owner and the G.Manager).
4. List of Correspondent Bank for Swift Transfer (Swift Code: DASHETAAXXX)

Interest Free Banking Diaspora Banking Products and Services

Coupled with continuous development in the provision of customers’ own used modern banking services, its service excellence also enables the Bank to gain momentum in having public confidence and maintaining its preeminence in operational and financial performances among the available private banks in Ethiopia. In doing so, the Bank is commenced rendering Shari’ah complaint full-fledged interest free banking services dubbed ‘’Sharik’’.

Dashen Bank is delivering interest free Banking service to its esteemed customers through full-fledged Branches and in dedicated windows of conventional Branches. In addition the core-banking system treated the window as a branch, which enables the bank to segregate fund from the conventional bank wing.

The interest free banking services include but not limited Deposit and Investment accounts, Financing contract, Letter of Guarantee , International Trade Service, Money Transfer .

Specific to the Ethiopian Diaspora communities, Dashen Bank caters the following banking services under Interest Free banking segments:-

1. Interest Free Banking (IFB) Deposit and investment Accounts

It is a type of bank account that will be opened for the Diaspora community in accordance with the laws and regulations of the National Bank of Ethiopia (NBE) and Shari’ah governing principles:-

A. Diaspora Qard Current Account

  • It is FCY account operated by cheque book and/or pre-arranged procedures.
  • An individual may open current account in only one of the domestic authorized bank. Thus, the customer shall give its confirmations to this effect.
  • The minimum balance to open this account is USD 100(One hundred US Dollar only) or equivalent in any of the eligible currencies (USD, GBP &EUR).

B. Diaspora Wadi’ah Saving Account

  • It is non-repatriate Birr saving account that can be used for local payments only.
  • It is an account that may take the form of Wadi’ah saving deposit that can be used for local payments only.
  • The option of passbook or statement may be offered to the customer(s) when this account opened.
  • The minimum balance to open this account is USD 100(One hundred US Dollar only) or equivalent in any of the eligible currencies

C. Diaspora Mudarabe Fixed (time) Deposit Account

  • The bank set to introducing the product for its clients in the near future. And the account will be opened based on profit and loss sharing principle.

To open accounts at our Bank, you can use one of the following options:-

  • Individuals living abroad can use selected international money transfer agents working with Dashen Bank or you can directly fill out the account opening application form posted at our Bank’s websitedashenbanksc.com and present documents to Ethiopian embassies in their domain for subsequent authentication and sent to Dashen Bank S.C. via courier or our corporate mail address.
  • If the customer is being able to physically present, he/she can appeal his application at all branches of our bank across the country.

Documents required

  • Application forms properly filled, signed by the applicant and specimen signature with two recent photographs of the account holder.
  • For Ethiopians or foreign nationals of Ethiopian origin individuals, valid passport and/or identification card and/or residence and work permit.
2. IFB financing facilities for Diaspora communities

a. Murabah Residential Home/Mortgage financing :-

  • This type of financing is a mortgage for a home buyer, with an equity contribution starting from 10%.
  • Very attractive and competitive pricing (profit mark-up) that depend up on the customer’s contribution and mode of re-payments, while the repayment period may last up to 20 years.

b. Murabah Car Financing (New & Used):-

  • A type of IFB Financing availed for the Diaspora communities to purchase a new/used car with an equity contribution starting from 10%.
  • Very attractive and competitive pricing ( profit mark-up ) that depend up on the customer’s contribution and mode of re-payments, while the repayment period may last up to 8 years for brand new cars and up to 5 years for used cars.

Murabah Personal Financing :-

  • This type of IFB Financing is has been availed for the diaspora that can be used for a variety of personal issues such as fulfillment of home supplements and so on upon presentation of acceptable collaterals.

 Murabah Investment Financing:–

  • This is a type of IFB Financing that has been availed to the diaspora for a wide range of potential investment activities that provides the customer with a attractive profit mark-up charges and with an equity contribution starting from 30% of the project cost.

The following summary portrays the type of IFB financing products and its pricing For the Diaspora communities:-

Type of financing Customer contributions Profit Mark –up rate Tenors
Murabaha  mortgage  Financing From 10 %  To 70% Starting From 4% From 1 to 20 years
Murabaha Car Financing From 20 %  To 70% Starting From 4% From 1 to 8 years
Murabaha Personal Financing From 10 %  To 70% Starting From 4% From 1 to 5 years
Murabaha Investment Financing 30 %  and above Starting From 4.5% From 1 to 20 years
Export Financing Starting From Zero Percent Three months and above

 Required Documents

  • The applicant shall open Diaspora Wadiah /Qard Current Account beforehand and save his/her equity contribution.
  • Financing application Letter that indicates the amount of Financing requested, duration, repayment frequency, value of his/her contribution & repayments either in FCY/Local currency, collateral offered purpose of the loan, source of repayment and so forth.
  • Copy of passport.
  • Permanent residence permits (Mandatory only for those Ethiopians who live abroad but having Ethiopian Passport).
  • One passport size photograph.
  • Employment letter showing annual gross and net income from employer (If applicable).
  • Copy of employment contract, if any.
  • Tax return (Optional).
  • Bank account statement from foreign source (Optional).
  • Certificate of Marital Status.
  • If deemed necessary power of attorney and copy of ID/passport.
  • If the applicant is a business person, he/she shall present:
    • Financial statement for at least three years
    • Renewed Trade License
    • Trade registration certificate
    • Tax payment certificate
  • Tin certificate of the applicant and spouse (If married)
  • Tax clearance certificate
3. Issuing International Debit Card

Eligible customers and accounts

  • All foreign currency saving account holders does have access to their account to the tune of 10% of the available balance without any approval.
  • All other customers shall have access to FCY amount approved as travel allowance in line with NBE’s pertinent Directives upon presentation of the following travel documents:
    – Present valid passport
    – Present valid Visa
    – Present valid air ticket
  • In the case of accounts operated by power of attorney, the agent can apply for a card on behalf of the Principal if and only if the power of attorney agreement explicitly states that the agent can apply and operate the account through a debit card.
  • In the case of a PLC accounts, the card is prepared only if the PLC account has a sole signatory. The card shall be prepared in the name of the Signatory (usually the owner and the G.Manager).
4. List of Correspondent Bank for Swift Transfer (Swift Code: DASHETAAXXX)

Dashen Bank S.C.

Welcome! You are just a moment away from becoming a member of one of the leading true Ethiopian Bank and see for yourself why a host of people love working with Dashen Bank.

Address: Along Bole Road, Wellosefer roundabout,
Bole tower, Adjacent to world bank office, Addis ababa
Telephone no.: +251115587901/
Email: dbdiaspora@dashenbanksc.com
Website: https://dashenbanksc.com
SWIFT Code: DASHETAAXXX

Download APPLICATION FOR OPENING OF FOREIGN CURRENCY RELATED ACCOUNT

Diaspora Landing
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