Loan and Advances
Agricultural Machinery Loan
Agricultural Machinery Loan
Agricultural Machinery Loan is a loan granted to those who are engaged in farming and agricultural related activities on a small/medium/commercial scale or to customers who are engaged in agricultural machinery rental businesses for the acquisition of agro-processing machineries and equipment (such as water pumps, generators, combine harvesters, tractors, coffee processing machines, etc.). This loan may also 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.
If the customer offers additional collateral in the form of a building having estimated value equivalent to 50% of the loan amount, the bank may relax the required equity contribution.
Motor Vehicle Loan
Motor Vehicle Loan
A Motor Vehicle Loan is a term loan granted for the purchase of new motor vehicles. The loan does not, however, include the cost of spare parts or luxury items.
In addition to the General Eligibility Criteria, customers shall fulfill the following specific requirements.
- The motor vehicles to be financed should meet the standard specification of the Ministry of Transport – Transport Authority.
- The motor vehicles to be bought shall only be new brand.
- The applicant should provide two proforma invoices from legally licensed supplier, but one proforma invoice for sole agent supplier, which will be verified by sole agent confirmation letter, and/or for suppliers with which the bank has business relationship.
Agricultural Term Loan
Power Your Harvest with Coopbank Agricultural Loans
At Coopbank, we are committed to empowering Ethiopia’s farmers and agribusinesses with the right financial support. Our Agricultural Loan Packages are crafted to help you plant more, grow more, and achieve more.
Fertilizer Loan
Get timely access to fertilizers with convenient short-term financing available for individuals, cooperatives, and associations engaged in agriculture
Input Loan
Secure affordable loans for improved seeds, agrochemicals, and other essential inputs to boost your productivity.
Investment Loan
Scale your agribusiness with financing for machinery, storage facilities, livestock, and plantations. Enjoy flexible grace periods of up to five years for coffee farms and up to two years for other types of agriculture.
Coopbank — Your trusted partner in agricultural growth!
Term Loan
Term Loan
A Term Loan is a loan granted for working capital and/or project finance to be repaid within a specific period with interest. The loan is repaid in a lump sum on maturity, or in periodic installments (monthly, quarterly, semi-annually or annually), depending on the nature of the business and its cash flow.
For any project financing, the borrower shall first commit her/his/its equity contribution to the project.
The Bank extends Short-Term, Medium-Term, and Long-Term Loans.
- Short-Term Loanis a loan extended to finance the working capital needs and/or to address other short-term financial constraints of the borrower. Short-Term Loan could be granted up to a maximum of two years.
- A Medium-Term Loan is a loan that has a maturity period longer than two years, not exceeding a maximum period of five years, with periodic installments.
- A Long-Term Loan, on the other hand, is a loan, which has a maturity period longer than five years with periodic installments.
The applicant for a Medium or a Long-Term Loan must be able to submit a detailed study of the capital investment project or a business plan. Unless specifically stated otherwise, the applicant must contribute at least 30% of the project cost from own financing. The Bank will finance the remaining balance up to a maximum of 70% of the total project cost after ascertaining the 30% equity contribution.
Letter of Guarantee Facility
Letter of Guarantee Facility
With Coopbank’s Letter of Guarantee Facility, your business receives a trusted assurance and a formal commitment to pay a beneficiary if obligations under a contract are not fulfilled
We offer one-time guarantees for single requests and renewable guarantees for recurring needs, with limits reviewed periodically. Our services cover both local and foreign customers, with guarantees for foreign beneficiaries requiring a foreign-currency permit from the National Bank of Ethiopia.
Types of Letters of Guarantee include:
1. Bid Bond Guarantee
2. Performance Bond Guarantee
3. Advance Payment Guarantee
4. Suppliers’ Credit Guarantee / Trade Credit Guarantee
5. Retention Payment Guarantee
6. Steamers’ Guarantee / Letters of Indemnity for Missing Documents
7. Customs Duty Guarantee
Secure your business commitments with Coopbank’s reliable Letter of Guarantee Facility!
Revolving Export Credit Facility
Revolving Export Credit Facility
Coopbank’s Revolving Export Credit Facility offers exporters fast and flexible financing to bridge temporary working capital needs. Upon presenting valid export documents (excluding a bill of lading), exporters can access up to 90% of the required amount, based on their financial strength and track record.
This facility is available to exporters with a clean business history who meet the General Eligibility Criteria and hold a Credit Risk Grade of 1, 2, or 3 with proven performance.
Enhance your export business with Coopbank’s tailored financing solutions.
Pre-shipment Export Credit Facility
Pre-Shipment Export Credit Facility
Pre-Shipment Export Credit Facility
Coopbank’s Pre-Shipment Export Credit Facility empowers exporters with short-term financing to cover the purchase of raw materials, processing, packing, warehousing, and transportation until shipment.
It is granted upon presentation of a valid sales contract and an irrevocable export letter of credit, or based on the client’s relationship and credit history.
We offer three types of Pre-Shipment Export Credit Facilities to meet diverse needs:
1. Against Development Bank of Ethiopia (DBE) Guarantee
2. On a Clean Basis Against Export Letter of Credit
3. On a Clean Basis Against Export Sales Contracts
Unlock your export potential with Coopbank’s tailored financing solutions!
Import Letter Of Credit Facility
Import Letter of Credit Settlement Loan
The Import Letter of Credit facility is a credit product that Coopbank extends to applicants engaged in the import business or other applicants who import for various purposes on payment of a certain percentage of the value of the document while opening a Letter of Credit.
The Import Letter of Credit facility amount to be availed to the customer is up to a minimum of 30% (NBE directive) as per margin of the document value, depending on the financial strength of the customer, the letter of credit facility account performance, and marketability of the imported goods for one year against valid import documents. A list of goods eligible for import may be obtained from the National Bank of Ethiopia at the time of opening the letter of credit.
In addition to the General Eligibility Criteria, the customer must fulfill the following specific requirements.
- The importers applying for an Import Letter of Credit Facility should present their import trade licenses.
- In the case of non-importers applying for a one-time Import Letter of Credit Facility, an investment certificate or appropriate license from the concerned government organ and Pro-forma Invoice shall be presented.
Types of Merchandise Loan
Types of Merchandise Loan
Cooperative Bank of Oromia S.C shall avail three types of merchandise loans, Revolving Merchandise Loan, One-time Merchandise Loan, and Merchandise Loan against warehouse receipts or import documents.
- Revolving Merchandise Loan: - Revolving merchandise loan is a type of merchandise loan in which the borrower is allowed to use up to the limit set by the Bank for a specific period. Revolving merchandise loan is renewable subject to proper utilization of the facility. It has to show adequate turnover and swing. In case of revolving merchandise loan, the bank encourages releasing of the merchandise items should be based on the principle of first- in first –out.
- One-time Merchandise Loan: - A one-time merchandise loan is a type of merchandise loan availed only for specified period usually up to one year. Branch Managers makes the necessary follow-up to make sure that such merchandise loan balance is reduced progressively over the loan period or is fully settled by the due date.
- Merchandise Loans against Import Document; - Cooperative Bank of Oromia S.C shall exceptionally avail merchandise loan against goods in transit supported by import documents for its prominent customers. In such cases, complete set of documents such as bills of loading, truck/air/rail waybills, commercial invoices, certificate of origin, insurance certificate, packing list, and other related documents should be submitted.
- Please contact us to get more detail information and advice.
Merchandise Loan Facility
Merchandise Loan Facility – Turn Inventory into Growth
Coopbank’s Merchandise Loan helps businesses unlock cash tied in inventory, keeping operations smooth and agile. The loan is provided against merchandise or valid documents such as warehouse receipts, waybills, or airway bills for goods in transit.
Types of Merchandise Loans
Coopbank avails three types of merchandise loans, Revolving Merchandise Loan, One-time Merchandise Loan, and Merchandise Loan Against Warehouse Receipts or Important Documents.
- Revolving Loan – Access funds up to a set limit repeatedly, ideal for continuous business needs
- One-time Merchandise Loan: Short-term credit for up to one year, perfect for seasonal or specific projects.
- Loan Against Import Documents –For goods in transit, supported by full import documentation.
Why choose Coopbank?
– Free up cash flow
– Smooth release of goods
– Flexible, tailored credit solutions
Apply now and turn your merchandise into business growth!