Diaspora Loan Facilities
Abay Bank offers an opportunity to all Ethiopians in the Diaspora to access and enjoy the Bank’s Diaspora Loan Facilities particularly designed for them. Following are two of our most popular loans especially designed for you.
- Diaspora Mortgage Loan
a) Purpose of the Loan
- To Purchase:
- Completed Residential House from real estate or individual sellers.
- Under construction residential /commercial building from real estate or individual sellers, if the building has completed 50%. And got title deed.
- To Construct;
- Residential house or commercial building on their own land.
b) Features of the Loan
- Diaspora mortgage loan is applicable to all Diaspora customers who can set aside savings, submit sustainable income source evidence, and fulfill such other eligibility criteria’s for the loan;
- The building to be purchased /constructed shall only be in the name of applicant or his /her spouse;
- The approved loan shall be disbursed in three rounds with construction of new and under construction residential/commercial buildings;
- Loan repayment period shall be a maximum 20 years;
- Loan repayment should be effected in FCY on monthly basis;
- If the Diaspora return to Ethiopia for permanent settlement before the loan is fully paid, the remaining loan repayment shall be effected in local currency;
- The mortgage loan lending interest rate shall be determined based on the equity contribution amount in FCY of 9%-11% and if the repayment is made in local currency, the lending interest rate shall be of mortgage loan lending interest rate (14%).
c) Eligibility Criteria:
- The Diaspora should open mortgage saving account and fulfill all the documentary requirements;
- The Diaspora shall deposit minimum equity contribution which is 20% of the purchase price or BOQ in FCY;
- Once the Diaspora entered a mortgage contractual agreement with the Bank, the equity contribution amount shall then be blocked;
- Diaspora customer who are willing to effect the repayment in FCY and confirm their willingness in a letter shall submit an “undertaking”;
- The loan repayment in foreign currency shall be transferred (using SWIFT) by the applicant to a real estate company via Abay Bank for the purpose of acquiring the building.
- The applicant shall pass customer due diligence /KYC/ requirements of the bank.
- Diaspora Investment Loan
a) Purpose of the Loan
This is a type of loan offered to provide partially finance to the Diaspora investor who are specially engaged in Agricultural, Agro-processing and Manufacturing sectors as well as other feasible service activities.
b) Features of Diaspora Investment Loan
- The equity contribution of the Diaspora is a minimum of 30% of the project in FCY, the maximum loan contribution by the Bank is 70%.
- The lending interest rate shall be determined based on the Bank’s prevailing term and tariff;
- The loan period is determine based on the type of the project and the Bank’s policy;
- The loan repayment shall be effected in local currency.
c) Eligibility criteria of Diaspora Investment loan;
To be eligible for investment loan the applicant should at least produce the following documents:
- Certificate of Martial statues/Authenticated/
- Valid passport copy
- Ethiopian origin ID. (Yellow Card) copy
- Tax identification Number (TIN) include spouse
- Tax clearing letter from concerned authority including spouse
- Investment and principal Registration license
- A letter by the Diaspora showing his/her minimum equity contribution 30% of the cost of investment project
- Bank account statement Audited financial statement shall offer (maintain Abroad).and others stated as the procedures
- All document must be notarized by MFA.