This credit scheme allows Diaspora Ethiopians (Non-resident Ethiopians and Non-Resident Foreign Nationals of Ethiopian Origin) to purchase or construct residential or commercial buildings in Ethiopia by saving with the Bank certain portion of the value in advance in foreign currency for a certain period of time
• The loan facility is given to :
- Purchase residential house from real estate, individual sellers or associations,
- Construct residential house on their own plot of land,
- Purchase or construct commercial buildings,
- Finish construction of residential house or commercial building.
• Withdrawal is not allowed from the special Diaspora mortgage saving account but if the customer wants to withdraw, it will be considered as a breach of the contract, and thus will be treated based on the agreement that has been made between the Bank and the Diaspora.
• The Bank shall finance up to 50% of the value of the residential or commercial building as per the sales agreement or the Bank’s engineering valuation, whichever is lower
• For purchase of a finished house or for those who can present additional collateral in case of under construction below 50% status, the Bank shall finance up to 70% of the value
• Loan interest rate shall be as per the Bank’s terms and tariffs,
• If the Diaspora returns to Ethiopia for permanent living, the loan repayment will be in Birr but with a 1% additional interest rate
The Diaspora should save at least 50% of the value of the house or commercial building in foreign currency in a special Diaspora mortgage saving account designed only for this purpose either by transferring from Diaspora foreign currency accounts if he or she maintains one or by directly remitting to the specified Diaspora mortgage saving account
should be effected in foreign
The Diaspora must be willing
to work with the real
estate company selected and proposed by the Bank.
All the requirements for account opening
facilities stipulated in Bank’s procedure will also apply.