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Banks Ethiopia gives you the access and information you need to get car loan and house loan services in Ethiopia from the bank of your choice. If you are a non resident and/or a foreigner with origin of Ethiopia looking for these loan services, make sure to visit our diaspora mortgage loan and diaspora vehicle loan pages to acquire a more detailed information.

About Berhan Bank

Berhan Bank S.C. was officially registered and licensed by the National Bank of Ethiopia on 27 June 2009, with a vision to be the preferred bank in customer experience and integrity. With an authorized capital of Birr 300 million and a subscribed capital of Birr 154.7 million — divided into shares of Birr 1,000 each — Berhan Bank commenced full banking operations on 3 October 2009.

Under the leadership of President Ermias Tefera, who was appointed in January 2024, the bank has grown into one of the most established private commercial banks in Ethiopia. As of the 2024/25 fiscal year, Berhan Bank operates 376 branches across the country, supported by a modern Core Banking System and a comprehensive suite of digital banking solutions.

Services Provided by Berhan Bank

Personal Banking

Current Deposit Account

Berhan Bank offers Current (Demand) Deposit Accounts that are operated using cheques. The bank is obligated to honor all cheques drawn against a customer’s account, provided that sufficient funds are available.

This account is designed for individuals and institutions that conduct frequent transactions to meet their day-to-day business and operational needs. It can be opened by governments, associations, companies, trusts, partnership firms, clubs, cooperative societies, sole proprietorships, and individuals.

Key Features

• No interest is paid on account balances
• ATM and Mobile Banking access available for individual account holders
• Minimum opening balance: Birr 50 for individuals and individual traders; Birr 1,000 for corporate bodies
• Accounts may be opened or operated by an authorized legal agent (power of attorney) subject to Berhan Bank’s verification
• Only literate customers may open or operate this account

Special Deposit Account (Minor’s Account)

This account is designed exclusively for minors (customers under 18 years of age). It is an interest-bearing account where interest is accrued on a daily basis and compounded monthly, offering a higher interest rate than standard accounts.

Requirements to Open

• Minimum opening deposit of Birr 50
• A letter of application
• Address of the parent or guardian
• Birth certificate of the minor

Savings Accounts

Berhan Bank offers a range of savings account options for individuals, organizations, and associations:

Ordinary Savings Account

Available to individual customers, either in a single or joint capacity. Interest is calculated at the end of each month and credited directly to the account. An initial deposit of Birr 50 is required to open the account, though exceptions may be made in special cases for zero-balance openings.

Key Features

• ATM Card access at any ATM nationwide
• Mobile Banking services
• Can be opened and operated by an authorized legal agent

Premium Savings Account

This is a tiered, premium interest-bearing savings account. Berhan Bank recognizes customers’ contributions by applying higher interest rates based on account balance levels:

The minimum deposit required to open a Premium Savings Account is Birr 1,000. Interest rates applied per tier are as follows:

Non-Interest-Bearing Special Deposit Account

This is a non-interest-bearing account opened upon the customer’s request. It is suitable for customers who prefer to hold funds without earning interest — for example, for compliance or religious reasons.

Key Features

• 0% interest rate
• Mobile Banking services available
• Can be operated with or without a passbook or ATM card

Term Deposit (Certificate of Deposit)

A Term Deposit allows customers to deposit a fixed sum of money for a specified period and earn interest at a pre-agreed rate. The deposit term can range from months to years, depending on the customer’s preference. The longer the funds remain on deposit, the higher the interest rate earned.

Key Features

• Minimum fixed deposit term: three months
• Minimum initial deposit: Birr 500
• Upon maturity, the customer receives both the principal and the accrued interest
• Interest rates increase with the length of the deposit period

Account for Interdicted Persons

This account is specifically designed for individuals who have been legally declared incapable of managing their own financial affairs (interdicted persons). It is opened and managed by a court-appointed guardian on behalf of the account holder.

Requirements

• A court verdict declaring the individual legally incapable
• Official appointment of a guardian by the court
• The account is opened and operated solely by the court-appointed guardian

Personal Loans

Berhan Bank’s personal loan products are designed to help customers meet a variety of financial needs, including:

• Financing urgent or unexpected expenses
• Purchasing household equipment, furniture, or a vehicle

Durable Consumer Loans

Berhan Bank’s Durable Consumer Loan is designed to facilitate the purchase of household equipment and furniture with a useful life of more than one year. The loan is secured against a mortgage or pledge of a building or vehicle.

Documentation Requirements

All applicants must provide:

• An employment confirmation letter from the employer, stating employment status, duration of service, monthly salary, and any deductions (including those of the applicant’s spouse)
• A valid identity document: national ID, employment ID, driving license, or passport
• Proof of marital status

Financial documents required:

• For salaried employees: the most recent salary slip, or an official income and deductions declaration from the employer, or the latest certified income tax return
• For self-employed individuals: financial statements and/or commercial credit reports, copies of income tax returns for the past two years, and tax clearance certificates in the names of the borrower, spouse, and any guarantors

Non-Durable Consumer Loans

This is a collateral-based loan product designed to help customers cover urgent short-term expenses, such as medical treatment, domestic or international travel, and similar needs.

The loan amount is determined by the customer’s income and repayment capacity. The minimum loan amount is Birr 20, and the maximum is Birr 100,000. Repayment must be completed within a maximum period of one year through regular installments. The loan must be secured by a building mortgage in a major town, with a minimum collateral coverage of 150%.

Eligible Applicants

• Ethiopian nationals residing in Ethiopia, or Ethiopians by origin with the capacity to repay
• Salaried employees or business owners
• Professionals or self-employed individuals

Required Documents

• Loan application letter (mandatory)
• Valid residential identification card (mandatory)
• Proof of marital status (mandatory)
• Financial statement or proof of income (mandatory)
• Collateral ownership document (mandatory)
• Proof of identity, residence, and age (mandatory)
• Driving license (optional)
• Passport (optional)
• Birth certificate (optional)

Motor Vehicle Loans

Berhan Bank offers a term loan for the purchase of brand-new motor vehicles. The financed vehicle serves as collateral and must be registered with the appropriate legally authorized registration body. The loan covers the factory-standard cost of the vehicle only — additional spare parts, customizations, or luxury accessories are excluded.

The vehicle must meet Ethiopia’s minimum national vehicle standards and must be brand new at the time of purchase. Berhan Bank reserves the right to request additional collateral if deemed necessary to protect its interests.

Diaspora Banking

Berhan Bank offers a dedicated range of banking products for Ethiopian diaspora customers. Diaspora accounts can be denominated in US Dollars, Pound Sterling, or Euros. The following account types are available:

Diaspora Savings Account

A savings account that holds funds in Ethiopian Birr at a local interest rate set at double the standard savings rate, providing diaspora customers with an attractive return on their deposits.

Diaspora Fixed Time Deposit Account

A fixed-term deposit account denominated in foreign currency, allowing diaspora customers to earn interest on funds held for a specified period.

Diaspora Current Account

A foreign currency current account for diaspora customers. To open this account, customers may:

• Visit any Berhan Bank branch in person with the required documents
• Contact one of Berhan Bank’s authorized agents
• Complete the request form online at www.berhanbank.com.et

After submitting the application, customers are required to present the necessary documents to the Ethiopian Embassy in their country of residence. The Embassy will then forward the documents to Berhan Bank for authentication.

Required Documents

• A fully completed application form, signed by the applicant, with two recent passport-sized photographs
• Non-resident Ethiopians must provide a valid residency permit or certification confirming that they have been living and working abroad for at least one year, subject to annual renewal
• Ethiopians residing in neighboring countries or the Middle East must present a valid residence permit and/or work permit issued by Ethiopian Embassies, subject to annual renewal
• Diaspora individuals: a copy of a valid Resident ID and passport
• Businesses: a certificate of ownership, including the organization’s name, and/or the articles and memorandum of association

Diaspora Loans

Diaspora Consumer Loan

A phased installment loan designed to cover the urgent financial needs of diaspora Ethiopians. The maximum loan tenure is 5 years, with a maximum loan amount of Birr 2,000,000 and an interest rate of 9–12%. Accepted collateral includes:

• Vehicles or machinery
• Buildings
• Share certificates of financial institutions

Diaspora Automobile Loan

A loan facility for diaspora Ethiopians wishing to purchase a new or second-hand motor vehicle for non-commercial use. The vehicle may be registered in the name of the diaspora customer or their spouse.

Diaspora Housing / Mortgage Loan

Available for the purchase, construction, renovation, or expansion of residential buildings or apartments by diaspora Ethiopians.

Diaspora Business Loan

A term loan available to diaspora customers for working capital and project financing purposes. The loan is repaid over an agreed period, inclusive of interest.

Corporate Banking

Business Account

The Berhan Bank Business Account combines the features of both savings and current accounts, allowing corporate customers to earn interest on their deposits while making payments by cheque. Key details include:

• Required average daily balance: Birr 100,000 (with a ten-day grace period to build up the balance)
• Interest rate: 5.6% per annum
• Initial deposit required: Birr 5,000
• 50 free cheques per period; additional cheques are charged at Birr 10 each
• A fee of Birr 250 is charged if the average daily balance falls below the required minimum

Overdraft Protection

Customers who hold both a savings account and a current account with Berhan Bank are eligible to use their savings account as overdraft protection for their current account. If a cheque is presented against insufficient funds in the current account, the required amount is automatically transferred from the savings account to cover the shortfall. A fee of Birr 20 is charged per transaction. This feature must be disclosed and activated at the time of account opening.

Other Corporate Products

• Corporate Loans — tailored credit facilities for businesses
• Provident Fund Management: Berhan Bank maintains and manages employee provident fund accounts on behalf of organizations, offering competitive interest rates under a formal agreement with the employer.

Letter of Credit (L/C)

Berhan Bank’s Letter of Credit facility is available to importers and businesses that regularly pay a percentage of the document value for goods or services. The facility can be structured as either a revolving or a one-time arrangement:

• Revolving L/C: A renewable facility available to customers who use it regularly. It remains valid as long as the account demonstrates the required performance and is renewed annually.
• One-Time L/C: A non-renewable facility available to any eligible applicant for a single import transaction.

The minimum margin for the L/C facility is 20% of the document value. However, Berhan Bank may offer a lower margin in exceptional cases based on the customer’s account performance, customer type, and the salability of the imported goods. Failure to renew an import L/C annually may result in the account being classified as a poor-performing account.

Trade Finance Services

Import of Goods and Services

• Cash Against Documents (CAD)
• Advance Payment (Telegraphic Transfer — TT)
• Letters of Credit (LC)
• Import Bills Collection (IBC)

Export of Goods and Services

• Cash Against Documents (CAD)
• Advance Payment (Telegraphic Transfer — TT)
• Letters of Credit (LC)
• Consignment

Salary Fund Management (Payroll Account)

Berhan Bank’s Salary Fund Management service enables organizations to process employee salary payments efficiently and securely. Employees benefit from an attractive interest rate, free ATM cards, and full mobile banking access.

Key Features

• Interest-bearing account
• Mobile Banking services included
• Features similar to a standard savings account
• Can be opened with a zero balance
• ATM cards issued at no charge
• Payroll processing is provided to employers free of charge

International Banking

Letter of Guarantee

Berhan Bank issues Letters of Guarantee on behalf of customers who are obligated to make payments to local or foreign beneficiaries. In the event that the customer fails to fulfill their payment obligation, Berhan Bank undertakes to pay the specified amount in accordance with the terms of the underlying agreement or contract.

Letters of guarantee may be structured as either one-time or renewable instruments:

• Renewable Letters of Guarantee: The guarantee limit is renewed periodically, provided the customer continues to meet Berhan Bank’s requirements and conditions.
• One-Time Letters of Guarantee: A non-renewable guarantee issued for a single transaction.

Full collateral coverage is required for the issuance of a Letter of Guarantee. Berhan Bank’s legal counsel reviews all terms and conditions in the agreement between the beneficiary and the obligor. Letters of guarantee are valid for one year and must be renewed annually unless there are sufficient grounds not to do so. Guarantees are available to both local and foreign beneficiaries. For guarantees issued in favor of foreign beneficiaries, a foreign currency permit from the National Bank of Ethiopia is required. Berhan Bank does not issue guarantees with a duration exceeding two years.

Issuance Conditions

Berhan Bank may issue a Letter of Guarantee under the following circumstances:

• Upon the request of a local customer, in favor of a local beneficiary, denominated in Ethiopian Birr
• Upon the request of a local customer, in favor of a foreign beneficiary, denominated in foreign currency
• Upon the request of a correspondent bank, in favor of a local beneficiary, subject to the International Banking Division’s processing, and Berhan Bank being adequately secured against risk

Digital Banking

Debit Card

The Berhan Debit Card provides customers with convenient, around-the-clock access to their accounts. Cardholders can perform the following transactions:

• Cash withdrawals at any ATM
• Fund transfers between personal accounts
• Balance inquiries and mini account statements
• PIN changes
• Bill payments and purchases at point-of-sale terminals worldwide
• Setting up Online Banking alerts to monitor spending
• Scheduling recurring payments to avoid missed deadlines
• Access to over 3,100 ATM locations across the network

Internet and Mobile Banking

Berhan Bank provides a fully featured online and mobile banking platform, accessible at https://berhanonline.et/. Customers can manage their accounts, transfer funds, pay bills, and view statements at any time from any device.

In addition, educational institutions — including colleges, universities, training centers, and schools — can use the School Pay platform (https://schoolpay.berhanonline.et/) to track and manage student payment records in real time.

Berhan Bank — Credit Score, Worthiness & Credit History

Credit Score

Berhan Bank does not publish a formal institutional credit score in the conventional sense, as Ethiopia’s structured credit rating framework is still evolving under the National Bank of Ethiopia (NBE). However, the bank’s key performance indicators provide a clear and reliable picture of its credit standing:

• Non-Performing Loans (NPL) Ratio: As of June 2025, Berhan Bank’s NPL ratio stood at 4.78%, an improvement from 4.98% the prior year. This figure remains below the NBE’s maximum regulatory threshold of 5.0%, reflecting disciplined credit risk management across a large and diversified loan portfolio.
• Loan Portfolio Diversification: The bank’s lending is spread across retail, diaspora, MSME, corporate, and trade finance segments, reducing sector-specific concentration risk.
• Provisioning Compliance: Berhan Bank maintains full compliance with NBE-mandated loan loss provisioning requirements, ensuring adequate reserves to protect depositors and the institution.

Credit Worthiness

Berhan Bank’s creditworthiness is supported by strong and improving financial fundamentals. The following key indicators reflect the bank’s position as of the 2024/25 fiscal year:

Berhan Bank’s paid-up capital of ETB 4.3 billion demonstrates strong progress toward the NBE’s revised minimum paid-up capital requirement of ETB 5 billion. The bank’s consistently improving profitability, cost efficiency, and capital growth position it as one of the most financially sound private commercial banks in Ethiopia.

Credit History

With over 15 years of uninterrupted operations, Berhan Bank has built a credible and transparent financial track record:

• Established in 2009, Berhan Bank has operated continuously without any reported major regulatory sanctions or compliance failures, reflecting a culture of sound governance and risk management.
• The bank has recorded consistent growth in profits year after year — most recently delivering a 66.5% increase in pre-tax profit in 2024/25 — demonstrating sustainable earnings power and effective management.
• Total assets have grown by 28.1% in a single fiscal year, reaching ETB 58.9 billion, reflecting deepening market penetration and strong customer confidence.
• The bank’s NPL ratio has improved year-on-year, declining from 4.98% to 4.78%, which is a positive signal of improving loan book quality and enhanced credit monitoring.
• Berhan Bank’s Cost-to-Income Ratio has improved significantly from 53.4% to 46.8%, indicating better operational efficiency and stronger earnings quality.
• The bank adheres to all NBE-mandated prudential requirements and maintains timely regulatory reporting, reinforcing its positive standing with Ethiopia’s central banking authority.

Financial Performance Summary

Contact Information