Is there any assurance for Coopbank Alhuda Sharia compliance?

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

What differentiate Restricted Mudarabah (Mudarabah Muqayyadah) from Unrestricted Mudarabah (Mudarabah Mutlaqah)?

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.

What is a minimum deposit to open Labbaik Saving Account?

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.

Does Coopbank Alhuda offer its services to Non-Muslims?

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

Is there any assurance for Coopbank Alhuda Sharia compliance?

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

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.

Am I eligible to have Gudunfa?

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

What should I do if I lost my passbook, Cheque or CPO?

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