Domestic Banking https://coopbankoromia.com.et Wed, 25 Nov 2020 13:15:38 +0000 custom generator for seo en-gb Loans and Advances https://coopbankoromia.com.et/index.php/en/services/domestic-banking/loans-advances https://coopbankoromia.com.et/index.php/en/services/domestic-banking/loans-advances

Loans and Advances

Overdraft Facility Allow customers to draw beyond the deposits of their current accounts, for a viable and ongoing business.

Overdrawal

The right to withdraw a specified amount of fund over the Overdraft limit as working capital.

Merchandise Loan Facility

A credit facility provided against merchandise or documentary evidence as a collateral for short term.

Pledge or collateral

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[bt_li]Negotiable warehouse receipt for goods in warehouse[/bt_li]

[bt_li]Original Railway Receipts[/bt_li]

[bt_li]Truck-way bills[/bt_li]

[bt_li]Airway bills[/bt_li]

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Import Letter of Credit Facility

A facility provided to importers, on payment of a certain percentage of the value of the document while opening a Letter of Credit.

Pre-Shipment Export Credit Facility

A Facility extended for expenses until the time of shipment:

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[bt_li]Purchase of raw materials[/bt_li]

[bt_li]processing[/bt_li]

[bt_li]Warehousing[/bt_li]

[bt_li]Packing and transporting and other[/bt_li]

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Revolving Export Credit Facility

An advance extended to exporters to bridge their temporary working capital requirement upon presentation of all valid and acceptable export documents, except bill of loading.

Letter of Guarantee Facility

A written promises by the bank as compensation to the beneficiary in the event that the obligor fails to honour his/her/its obligations, in accordance with the terms and conditions of the guarantee/agreement/contract.

Types of Letters of Guarantee rendered:

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[bt_li]Bid Bond[/bt_li]

[bt_li]Performance Bond[/bt_li]

[bt_li]Advance payment Guarantee[/bt_li]

[bt_li]Suppliers’ Credit Guarantee(Trade Credit Guarantee)[/bt_li]

[bt_li]Retention Payment Guarantee[/bt_li]

[bt_li]Customs Duty Guarantee[/bt_li]

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Import Letter of Credit Settlement Loan

A loan rendered by converting the outstanding import letter of credit document’s value either to a merchandise loan facility or a term loan.

Term Loan

Types of Term Loan

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[bt_li]Short-Term[/bt_li]

[bt_li]Medium-term and[/bt_li]

[bt_li]Long-term[/bt_li]

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Agricultural Term Loan

A loan rendered for purchase of agricultural inputs and Agricultural Investment.

Motor Vehicle Loan

Loan provided for the purchase of new motor vehicles for borrowers in business sectors.

Construction Machinery Loan

A loan delivered for the purchase of new construction machinery.

Equipment/Machinery Lease Financing

Available for either of the parties to the lessee agreement:

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[bt_li]Equipment/Machinery lease financing for the lessee[/bt_li]

[bt_li]Equipment/Machinery lease financing for the lessor.[/bt_li]

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General Eligibility Criteria for Loan

All customers applying for any type of loan/facility at CBO must fulfill the following general eligibility criteria:

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[bt_li]All persons engaged in lawful trading activities and creditworthy business(es) is/are eligible to borrow business loans. However, other non-trading institutions will be eligible depending on their nature and strategies without violating any active proclamation or directive.[/bt_li]

[bt_li]The business credit applicant should present renewed trade license for the current fiscal year or investment license and principal registration certificate for new projects.[/bt_li]

[bt_li]All applicants who are engaged in business must present a tax identification number /TIN/ or tax exemption certificate for all of their income.[/bt_li]

[bt_li]The applicant and/or any of its shareholders/subsidiaries shall fully settle any previous loss to the Bank, if any. To this effect, internal records shall be thoroughly checked.[/bt_li]

[bt_li]The applicant must have never been engaged in tax evasion, or in a breach of exchange and control regulations, or in any other illegal/unlawful dealings, if the information is known to the bank/the circulated record is available.[/bt_li]

[bt_li]The applicant must not have any record of mal-operation of the checking account in the banking system until the rehabilitation period is expired.[/bt_li]

[bt_li]The applicant shall fulfil at least the required minimum equity contribution.[/bt_li]

[bt_li]The applicant and/or any of its major shareholders/subsidiaries must not have any non-performing loans in any bank.[/bt_li]

[bt_li]The applicant has to present all the documents/information demanded by the Bank.[/bt_li]

[bt_li]The applicant’s business must be financially viable, legally acceptable, socially desirable, technically feasible and environmental friendly.[/bt_li]

[bt_li]If the applicant is cooperative, it has to provide its legal personality certificate and the last budget years’ audited financial statements, should establish accounting and record keeping systems, employ qualified manpower, and properly drawn business plans to effectively run the business.[/bt_li]

[bt_li]In addition to these criteria, customer has to fulfil the specific eligibility criteria for each loans and advances indicated in the credit product line.
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Domestic Banking Mon, 18 Sep 2017 11:21:22 +0000
Local Money Transfer https://coopbankoromia.com.et/index.php/en/services/domestic-banking/local-money-trasfer https://coopbankoromia.com.et/index.php/en/services/domestic-banking/local-money-trasfer

Making use of its nation wide branch network and state of technology, CBO renders fast and reliable local money transfer service.

Among various modes of remitting funds from one spot to the other.

CBO Effecting:

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[bt_li]Mail Transfer:- Telegraphic or Telephone transfers[/bt_li]

[bt_li]Local Draft:- Cashier payment order(CPO)[/bt_li]

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Domestic Banking Mon, 18 Sep 2017 11:20:14 +0000
Deposit https://coopbankoromia.com.et/index.php/en/services/domestic-banking/deposit https://coopbankoromia.com.et/index.php/en/services/domestic-banking/deposit

Major types of domestic/local deposit product accounts are:

  1. Saving Account;
  2. Demand/Checking Account;
  3. Fixed Time Deposit Account;

I. Saving Account

  1. Ordinary Saving Account

Features:

  • It is an interest bearing deposit account
  • The minimum balance to open the account is Birr 50.00;
  • withdrawn by properly filling a withdrawal slip;
  • Operated by a passbook and an ATM-Card;
  • It can be opened and/or operated by a legal agent in the name of principal, against producing a power of attorney;
  • No restrictions on the number and amount of deposit and withdrawal unless restricted by pertinent bodies;

Advantages of Ordinary Saving Deposit

  • Encourages saving culture/habits of the society;
  • Enables the depositor to earn income through interest ;
  • Helps the depositor to make fund transfer;
  • Paying through ATM/POS cards, internet & mobile and etc.;
  • It provides immediate cash as and when required;
  • It gives record of all transactions for the customer.

       B. Sinqe Women’s Saving Account

 Features & Benefits:

  • Tailored for women aged 30 years and above;
  • opened individually;
  • Accompanied by separately branded debit cards;
  • Zero Minimum deposit requirements for opening the account;
  • Enjoy higher interest rate and other benefits attached to the product.
  • It develops saving habits of women and the general public;
  • Builds up future planning;
  • Encourages finical independency for the women

       C. Youth Savings Account

Features & Benefits:

  • It is an account for male and female youth in the age group 15-29 years;
  • Zero minimum deposit requirements;
  • It is accompanied by debit card;
  • It has no transaction fee and free account maintenance;
  • Gain higher interest rate compared to ordinary saving account.
  • Develop saving habits of self employed teen-youth;
  • It builds up future planning;
  • It gives financial independency for the youth.

       D. Gamme-Junior Account

Feature & Advantages

  • Saving Account for children aged 0-15 years in the name of the child;
  • Administered by parents/guardian until the child becomes able to do so;
  • Opened and operated by the parents jointly, or by the parent or guardian, or solely by themselves (as the case may be);
  • Birth certificate or any evidentiary document issued by pertinent organ needed;
  • If the parent/guardian becomes incapable to exercise their power of guardianship for various reasons, another guardian is appointed by the law;
  • Payment is enabled to the junior when he/she attains the age of youth.
  • No minimum amount requirement to open the account;
  • No transaction and account maintenance fees;
  • No debit card is issued on this account;
  • Gain higher interest rate and enjoy other benefits attached to the product;
  • Develop saving habits and build up future planning.

       E. Special Saving Account Features

Feature:

  • Interest bearing account operated by a cheque;
  • It is account opened for prominent customers of branch;
  • Opened or operated by literate customers only;
  • The customer should not be in delinquent list;
  • No passbook is required for such accounts;

II. Demand Deposit Account

  1. Ordinary Demand Deposit Account

Basic features:

  • It is current or checking account which is a non-interest bearing;
  • It is opened or operated by literate customers only;
  • The minimum amount required by the bank to open for individual trader is birr 500.00 and for organizations/companies Birr 1,000.00 ;
  • The account opening customer should not be in the blacklist;
  • No restrictions on the number and amount of deposits & withdrawals;
  • It can be opened and/or operated by a legal agent in the name of principal, against producing a power of attorney;
  • The bank shall issue account statement to the customer on monthly basis.

Advantages Ordinary Demand Deposit Account is:

  • It facilitates/makes easy business transactions;
  • It enables to carry out transactions properly and promptly;
  • The account holders withdraw without any limit;
  • It helps make a direct payment to their creditors by issuing checks;
  • It enables the bank to collect money on behalf its customers;
  • Customer’s account statement is monthly issued by the bank;
  • Multi-location fund transfers.

       B. Special Demand Deposit

  • It is a checking account which bears interest less than the minimum interest rate of SA set by the NBE(determined by the bank);
  • All its features & advantages are the same with ordinary demand deposit account except the above mentioned one;

       C. ECX Related Accounts

  • Special Pay-in or Pay-Out account for the members of the ECX to facilitate the trading of Commodity at ECX;
  • Opening request is lodged by the ECX through an account opening facilitation letter to the bank.

III. Fixed Time Deposit

  • Received for a fixed period of time with negotiable interest rate (normally higher than the prevailing saving interest rate);
  • certificate of deposit(CD) is issued;
  • Withdrawal is not allowed prior to the maturity date;
  • withdrawn before due date forfeits the higher interest rate;
  • Can be renewed for a further period;
  • Interest is calculated only for the duration of the certificate,
  • No interest will accrue after expiry;

Advantages of fixed time deposit

  • It encourages saving habits for a longer period of time;
  • Earning higher interest rate;
  • On maturity the amount can be used for planned expenditure;

Types of foreign currency account may include:

       A. Non-Resident Transferable FCY Accounts (NRT FCY)

  • Maintained in foreign currency and
  • Can be transferred abroad without obtaining foreign exchange permit;

       B. Non-Resident Transferable Birr Account (NRT)

  • Account maintained in Birr
  • Funds can be transferred abroad in foreign currency without the obtaining foreign exchange permit
  • All sources deposits  should be   in foreign currency;

       C. Non-Resident Non-Transferable Birr Account (NRNT)

  • Account opened to meet their local expenses;
  • The account is designated as '' Non-Transferable Birr Account''
  • All sources for deposits should be in foreign currency;

       D.Foreign Exchange Retention Accounts

  • Accounts opened for exporters and recipients of inward FCY remittance   (Foreign Currency retention A & B accounts)

       E. Foreign Currency accounts/Diaspora Account

  • Foreign currency Account opened in the name of Ethiopian and foreign nationals of Ethiopian origin.
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Domestic Banking Mon, 18 Sep 2017 11:15:21 +0000