Loan and Advances
Non-Resident Accounts
Types Of Non-Resident Accounts
- Non-Resident Foreign Currency Account
- Non-Resident Non-Transferable Birr account
- Non-Resident Transferable Birr Account
- These accounts are opened for those organizations and individuals who are permitted to open NR – FCY accounts,
- Opening criteria and procedure are the same as that of the NR – FCY account,
- The balances of these accounts are expressed in Birr,
- Transfers from these accounts are exempted from the exchange commission,
- As the name itself indicates the balance of these accounts can be converted or transferred abroad or to NR – FCY account without prior approval of NBE.
Eligibility
- Diplomatic mission offices,
- Diplomatic mission staff (except for Ethiopian nationals),
- Members of the International Community,
International organizations and their organs.
Agricultural Investment Loan
Agricultural Investment Loan
It is a short to long term loan granted to Cooperatives, Associations, Commercial Farms, or Individuals for working capital as well as purchase or lease of buildings, agro-processing machinery, and equipment (such as water pumps, generators, combine harvesters, tractors, vehicles, coffee processing machines, etc.), for plant and animal production (dairy production, poultry production, and livestock fattening activities) in small/medium/large-scale farming, construction of storage facilities, etc.
The bank gives priority to modern commercial agriculture ventures that produce for the export market and may finance both rainfed and irrigation system farming. The bank may provide a maximum grace period of five years for plantations like coffee plantation and a maximum of two years for other agricultural farms.
Agricultural Input Loan
Agricultural Input Loan
Fertilizer Loan
It is a short-term agricultural loan granted for the purchase of fertilizers. The applicant can be Cooperatives, Associations, Commercial Farms, Individuals, or Regional State. Applicants that are established as Cooperatives or Associations may be extended clean based fertilizer loan; however, they have to:
- Acquire legal personality from the concerned governmental organ.
- Present Minutes of a resolution passed by at least three-fourths of the members of the General Assembly of their Cooperative /Association.
- Provide audited financial statements.
- Employ a Manager and an Accountant/Bookkeeper; and
- Present letter of guarantee from the Regional Government which in turn shall present a letter of guarantee from the Ministry of Finance and Economic Development.
Other Agricultural Input Loans
It is a short-term loan granted to Cooperatives, Associations, Commercial Farms, Individuals, and Regional Governments engaged in the agricultural sector for the purchase of agricultural inputs other than fertilizers like improved seeds, and/or agrochemicals.
Import Letter of Credit Settlement Loan
Import Letter of Credit Settlement Loan
Import Letter of Credit Settlement Loan is a form of a loan extended to a borrower by converting the outstanding import letter of credit document’s value either to a merchandise loan facility or to a term loan upon the fulfillment of the required eligibility criteria for a maximum period of one year when a customer is unable to clear the L/C documents due to shortage of cash flow. The customer couldn’t be allowed not more two times a year.
In addition to the General Eligibility Criteria, the customer shall fulfill the following specific requirements.
- The customer’s credit risk shall be grades 1, 2, or 3.
- The bank shall finance only import letter of credits opened at its end.
- The applicant shall not have any other long outstanding import letter of credit document arrived.
- The customer shall apply for a loan within five days after the bank advised the arrival of a letter of credit documents.
Saving Account
A. Gamme-Junior Account
Junior Gaammee is the second Gadaa grade in which children with the age group between 9 -16 are classified. They are mainly student in characteristic. Gamme-junior account in CoopBank is a saving account designed for children aged from 0-15 years.
It is opened in the child’s name. But, usually operated by the parent and/or guardians until the child is old enough to operate the account by him/herself. It can also be opened and operated by the children themselves independent of parents/guardians if it is proved that they have income of their own.
It can be opened and operated by the parents jointly, by the parent or guardian, or solely by themselves. Transactions are supervised/managed by parents/guardian/tutor and withdrawal requests are handled as agreed by parents. If the parent/guardian who had opened the account becomes incapable to exercise or loses his/her power of guardianship for various reasons, another guardian appointed by the law shall operate the account by producing a legal document, which ascertains his/her sole guardianship authority.
Birr 100 will be credited to their account by the bank as an incentive when their average six months deposit level reaches Birr 30,000.00(Thirty Thousand Birr) and above. Birth certificate or any evidentiary document issued by pertinent local or federal government organs shall be presented during account opening.
Additional Features
- No minimum deposit to open this account.
- No transaction fee and account maintenance are free.
- No debit card is issued on this account.
- Better interest rate than the normal saving rate will be applied on the account.
- The Account should be opened in such a way that the Bank would be able to make payment:
- To the junior when he/she attains the age of youth (as internally defined by bank’s procedure) by ascertaining it via pertinent documents to this effect.
- To his/her guardian appointed by the court of law when his/her parents die while he/she is a minor.
- Children that have proved to have income of their own and who opened the account by themselves can have access to their deposit account any time they need.
Benefits
- It provides seed money for children in their later age,
- No transaction and account maintenance fees.
- There is higher interest rate and other benefits attached to this product.
- Teach saving culture to the children
- Build up future planning.
Equipment/machinery Lease Financing
Equipment/machinery Lease Financing
The Bank may avail the Equipment/Machinery Lease Financing for either of the parties to the lease agreement i.e. Equipment/Machinery Lease financing for the lessee or Equipment/Machinery Lease Financing for the lessor.
The capital goods include earthmoving machines, construction vehicles, combiner, harvesters, etc. that are considered as essential to conduct business in any sector of the economy.
Consulting Firm Financing
Consulting Firm Financing
Consulting Firm Financing is a form of short-term loan extended for the purpose of working capital financing to business professionals engaged in rendering professional services such as Engineering, ICT, Law, Accountancy, Management, Architecture, Art, etc.
In addition to the General Eligibility Criteria, the customer shall fulfil the following specific requirements.
- Valid professional license from the concerned government body.
- The applicant shall have a minimum of two-year experience.
- Up-to-date financial statements (Audited or Provisional) including forecasted cash flow statement and business plan.
- Such loans shall be backed by acceptable collaterals.
Other Financings
Partial Financing for Acquired and Foreclosed Collateral
Partial Financing is a financing scheme whereby the Bank covers a portion of the auction price of foreclosed and acquired properties presented for sale by the Bank. These properties mean buildings, vehicles, machineries, and business establishments that are either held as collateral or acquired by the Bank.
Equipment/Machineries Lease Financing
The Bank may avail Equipment/Machineries Lease Financing to either of the parties to the lease agreement – lessee or lessor.
The capital goods include earthmoving machines, construction vehicles, combiner, harvesters, etc. that are considered as essential to conduct business in any sector of the economy.
Import Letter of Credit Settlement Loan
Import Letter of Credit Settlement Loan is a form of a loan extended to a borrower by converting the outstanding import letter of credit document’s value either to a merchandise loan facility or to a term loan upon the fulfillment of the required eligibility criteria for a maximum period of one year when a customer is unable to clear the L/C documents due to shortage of cash flow. Such loans are not allowed to a customer for more than two times a year.
In addition to the General Eligibility Criteria, customers shall fulfill the following specific requirements.
- The customer’s credit risk shall be grades 1, 2, or 3.
- Only import letter of credits opened at by the bank shall be financed.
- The applicant should not have any other unsettled long outstanding LC.
- The customer shall apply for the loan within five days after the bank advised the arrival of a letter of credit documents.
Construction Machinery Loan
Construction Machineries Loan
Is a loan extended in the form of term loan for the purchase of new construction machineries – dozers, graders, loaders, excavators, scrapers, rollers, asphalt pavers, crushers, concrete batching plants, concrete pavers, cranes, drilling rigs, wagon drills, chip spreaders, and concrete mixer mounted on trucks. This loan however does not include the cost of spare parts.
The minimum equity contribution for a credit risk grade 1 or 2 applicants is 50% of the purchase price of the machinery to be bought. For credit risk grades 3 and 4 applicants it is 60% and 70%, respectively.