What types of collaterals are acceptable?

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

What maximum percentage of the existing overdraft facility can be facilitated for a single overdrawal?

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


What are the general eligibility requirements for credit?

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.