Frequently Asked Questions

Eligible customers of the Gudunfa Saving Mobilization Service are individuals that are involved in:

• Petty traders of various nature including “Gulit”:
• Semi-skilled works like a garage,’Gomista’, metal and woodwork and etc…
• Smallholding farms: or
• Shoe shiners, car washers, porters, taxi assistants, street peddlers, etc;
• Any individual working in private or public organizations that earn daily income in the form of tips and other means;
• Parents to teach their children about saving.

Other groups can also be considered as long as they are deemed to be unbanked and/or have low-income. Branches shall assess their environment and prioritize the distribution of “Gudunfaa” accordingly

• Incase you lost your passbook, cheque, or CPO; please report to your branch as immediately as possible.

• Joint accounts shall be maintained in the name of two or three individuals to jointly operate the account;
• Joint accounts can be “And Account” and “And/or Account”.
• The nature of “And Account’ is that all the parties should be present at the counter of the bank to give payment instruction and withdraw money whereas “And/or” account type allows individual account holders to withdraw money and give payment instructions separately.

The minimum balance to open a domestic saving account is ETB 50.00. However, if you assure the bank that you will deposit at least the minimum amount within a month, it can be opened and maintained with zero balance for a month.

Individual

• Two photographs for saving account with valid and renewed I.D. card;

Individual Trader (Sole Proprietorship)

• Valid and renewed I.D. card;
• Renewed trade license:
• One recent passport size photograph;
• Tax Identification Number (TIN).

Private Limited Companies (PLC) and Share Companies

• Renewed trade license in the name of the company;
• Memorandum and article of association attested, registered and sealed by Documents Authentication and Registration Office;
• Letter requesting to open and operate the account, which shall be the authorized person/s stated in the memorandum and article of associations and that bears the company’s official stamp. Or with the minutes of resolution signed and stamped regarding delegation of authorized person/s who operate/s the account if not stated in the memorandum and article of associations;
• Valid and renewed I.D. card of the authorized person/s to operate the account;
• Tax Identification Number (TIN).

Legitimate Partnership

• Renewed trade license and investment certificate in the name of the partnership:
• Partnership agreement attested, registered and sealed by Documents Authentication and Registration Office.
• Letter of requesting to open and operate the account, which shall be signed and sealed by the official stamp of the partnership, if any;
• Valid and renewed I.D. card of the authorized person/s to operate the account

Share Companies

• Renewed trade license in the name of the share company;
• Memorandum and article of associations attested, registered and sealed by Documents Authentication and Registration Office;
• Minutes of the board of directors with regard to the opening person/s and operator/s of the account;
• Letter requesting to open and operate the account, which shall be signed by the board chairman and bears the company’s seal;
• Valid and renewed I.D. cards of the authorized person/s to operate the account:
• Tax Identification Number (TIN).

Public Schools

• Letter of authority from the respective City Administration Education bureau, Regional/Zonal/Wereda education bureau, or from sub-city education bureau (for Addis Ababa city);
• Valid and renewed the ID card of the authorized person/s to operate the account.

Higher Education (Government Owned) Colleges and Universities

• Letter of authority from the ministry of education or from their respective colleges/universities; OR
• From regional education bureau as appropriate; OR
• On the strength of the institution’s letter of request, if the institution was established by proclamation and announced on ‘Negarit Gazeta’;
• Valid and renewed I.D. Card of the authorized person to operate the account.

Public Enterprises

• Public enterprises shall produce the -Negarit Gazetta” for its establishment.
• Letter of appointment of the General Manager by the Board of management.
• Letter of request to open and operate the account by the general manager or his/her delegate/s:
• Valid and renewed I D card of authorized signatories.

Cooperative Societies

• Certificate of registration issued by the appropriate organ However, if they are under the process of formation a letter of authority from the respective organizing body:
• Approved and registered rules and regulations of the cooperative with each page bearing official stamp of the registering body and the cooperatives.
• Minutes of members’ resolution at the last general assembly In case. they are under the process of formation a letter of intent signed by all members;
• A letter of request by the chairperson to open and operate current account;
• Valid and renewed I.D. card of authorized person/s.
• Support letter from concerned government organ:
• Article and memorandum of associations.

Trade Unions

• Certificate of registration from the pertinent ministry or regional bureau of labor and social affairs;
• Approved and registered rules and regulations of the trade union. Each page of these rules and regulations shall bear the official stamp of the registering body and trade union;
• Resolution of the general assembly appointing the executive committee of the trade union bearing the official stamp of the trade union and registering body;
• Minutes of the executive committee;
• Letter of request by the chairperson to open and operate the account
• Valid and renewed ID cards of the authorized signatories

Associations and Clubs

Associations and clubs could be professional and non-professional such as Teachers Medical Doctors, Women, Youth Associations, Idirs, etc Associations and clubs shall produce

• Certificate of registration obtained from their respective organizing body:
• Rules and regulations of the associations, which bear the official stamp of the organizing authority and the association of club itself:
• Minutes of members’ resolution at the last general assembly appointing the executive committee duly sealed by the organizing authority:
• Minute of the executive committee and request letter by the chairperson to open and operate the account:
• Letter of request by the chairperson to open and operate the account:
• Valid and renewed I.D. Card of the authorized signatories.

• ID cards from Kebele, school or employment
• Valid passport
• Driving licence
• TIN card
• Farmer’s association ID card or Land ownership booklet
• Pension ID

The followings are eligible to maintain a local currency account:

• Individuals — either for themselves or for the earmarked type of account;
• Individual traders (sole proprietorship);
• Private Limited Companies (PLCs);
• Cooperatives, Unions, Associations, ‘Idirs’, ‘Iqubs’. SMEs and clubs;
• Financial Institutions (Banks, Micro Finance Institutions, Insurance companies, etc.);
• Organizations legally incorporated in the form of partnership, share company etc;
• Federal, regional state governments and their parietals and city administrations:
• Public and private learning institutions;
• International/foreign organizations;
• Nongovernmental organizations (NGO’S) – local or foreign;
• Public enterprises;
• Religious organizations;
• Joint ventures;
• Any other legal entity that can produce a legal document or letter from the concerned authorities can be eligible to open an account.

Acceptable collaterals which need to be registered with a legally empowered registrar office include:

• Real properties (premises, buildings, houses and leased lands), motor vehicles, construction machineries, equipment and corporeal elements of business entities.

Acceptable collaterals which may not be registered by a registrar office include:

• Merchandise, bank guarantee, guarantee from federal or regional governments, guarantee from Development Bank of Ethiopia, guarantee from non-government organizations, deposits in banks, negotiable instruments (treasury bills and government bonds), share certificates other than Coopbank’s share, trade receivables, written undertakings from federal regional governments, corporate/personal guarantee and valid Import and Export documents

Single overdrawal amount should not exceed 20% of the existing overdraft facility limit or ETB Ten Million.

All applicants applying for any type of loan/facility must fulfill the following general eligibility criteria

• Any credit applicant needs to open either a checking or saving account at any one of the bank’s branches before applying for a loan
• All persons engaged in lawful trading activities and creditworthy businesses are eligible to borrow business loans, and private individuals are eligible to borrow consumer loans. Other non-trading institutions will also be eligible depending on their nature.
• Business credit applicants should present a renewed trade license or investment license and principal registration certificate for new projects.
• All applicants/mortgagors/major stakeholders should present their Tax Identification Number (TIN)and of their spouses, if any;
• The applicants/major stakeholders engaged in the business should present tax clearance certificate;
• The applicant and/or any of its major shareholders/subsidiaries must not have any non-performing loans in any bank including Cooperative Bank of Oromia;
• There should never be any information available/circulated/ recorded about the applicant to be involved in tax evasion, any breach of exchange control regulations, or any illegal/unlawful dealings;
• The applicant must not have any record of mal-operation of checking accounts in the banking system until the rehabilitation period is expired. The applicant shall at least meet the minimum required equity contribution;
• The applicant has to present all the documents/information demanded by the bank;
• The applicant’s business shall be financially viable, legally acceptable, socially desirable, technically feasible, and environmental-friendly;
• If the applicant is a Diaspora, residence /work permit, renewed passport for non-resident Ethiopians/renewed passport and Yellow Card for foreigners of Ethiopian origin, minimum own equity contribution in foreign currency;
• For NOG’s, embassies and other international organizations working in the country, renewed license or permit issued by relevant government authority and other pertinent documents, and produce undertaking letter to channel their foreign currency receipt through the Cooperative Bank of Oromia;
• The applicant must be classified as grade 1, 2, or 3 in the Risk Grading for the credit provisioning. However, in exceptional cases, the bank may consider Grade 4-8 customers based on the magnitude of risk-benefit involved in the financing.
• In addition to these criteria, customers have to fulfill the eligibility criteria set for each loan and advances indicated in the credit product line.

Coopbank Alhuda provides all Interest-Free Banking products and services under the strict supervision of the Sharia Advisory Committee. This committee

Restricted Mudarabah is a fund that will be utilized explicitly to a particular project of the account holder’s choice, whereas Unrestricted Mudarabah is a fund that will be placed in the bank’s general pool of Shariah-compliant banking activities.

Any eligible individuals can open Labbaik Saving Account by depositing at least birr 500 (Birr five hundred) into the  account at the time of opening, along with valid ID card, two passport size photographs, and other essential documents. After that, the depositor can deposit any amount of money at any time from the account.

Yes, everyone who is interested in Interest Free Banking is welcome.

Coopbank Alhuda provides all Interest Free Banking products and services under strict supervision of Sharia Advisory Committee.

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