Best Banks for Diaspora Loans in 2023
If you are a diaspora looking to take out a loan but do not know what to do or where to start, then look no further. We got it covered!
The first thing you need to know is that Diaspora loans in Ethiopia are offered for foreign Ethiopians living abroad and foreigners living abroad with Ethiopian origins.
Most of the banks in Ethiopia offer loans for diasporas that will buy, construct or renovate a residential or commercial building, for those who will buy a brand new or used car, and those who want a loan for personal use. Read below to choose the bank that suits you well to provide a diaspora loan.
8.5
Dashen Bank
Amole Wallet
Gold debit card
Green card
Amole Digital Banking
Pay from your mobile
7.8
Abay Bank
Zero Balance Accounts
Muday Services
Agent Banking
Abay Bedeje
A banking service closer to home
8.1
Awash Bank
Banking and Services for micro finance institutions
School Tution Fee Collection Services
Lucy Women's Saving
Business Banking
Plenty of business banking choices
8.3
Hibret Bank
Hiber-ET
Hiber Shebamile Card
Hiber Agent Banking
Diaspora Banking
Convenient Banking
8.2
Cooperative Bank of Oromia
Diaspora Banking
Loans and Advances
Interest-Free Banking
Cooperatives Financing
Financing agricultural products
The primary or common steps to get a diaspora loan are no different from those to get a primary bank loan.
Basic Documents needed to get a Diaspora Loan
In order to get a diaspora loan from your chosen bank, you must acquire all the essential required documents listed below.
- Diaspora Saving Account
- You need a diaspora saving account to receive a loan from almost all banks.
- Passport and/or Yellow Card
- You need to have a renewed passport and a yellow card to show your Ethiopian origin.
- Marriage Status Papers
- If single, you need to have a new single certificate that is at most six months old.
- If married, you must have a marriage certificate authenticated by the concerned government organ in Ethiopia.
- Bank Statement
- You need to have your bank account statement showing your transactions for one year.
- You need to have an employment paper showing annual gross and net salary.
- Tax Clearance
- For the borrower
- For the spouse of the borrower, if married.
- Loan Application Request Form
- You need a loan application letter or request form that includes the requested loan amount, loan term, regularity of payments, offered collateral, loan purpose, source of repayment, and other relevant information.
- Work/Residence Permit
- To get a diaspora mortgage loan, vehicle loan, and customer loan, you need to get a work or residence permit.
- Collateral Documents
- You need a collateral item with proof of ownership along with all the documents.
- The equity contribution should be in foreign currency.
Diaspora Mortgage Loan
If you are a foreigner planning to purchase, build, or renovate a house in Ethiopia but require a loan to acquire your dream, banks offer diaspora mortgage loans. Note that a Diaspora mortgage loan is approved if the residential or commercial building that will be purchased is from a real estate company or a legitimate seller.
Most banks have the exact requirement and steps to get a diaspora mortgage loan.
Additional Documents needed to get a Diaspora Mortgage Loan
Most banks require you to qualify for the basic diaspora loan documents to get a diaspora mortgage loan. In addition, to get a diaspora mortgage loan and other services, you need to get all of the required documents listed below
- Diaspora Mortgage Account
- You must open a diaspora saving account and fill in all the documents provided by the bank of your choice.
- Trade/Investment Licence
- You need to have renewed trade/investment licenses.
- Lease Agreement
- A copy of the leasing agreement and the payment receipt is required.
Diaspora Vehicle Loan
If you are a foreigner in Ethiopia looking for a loan to purchase a brand new or old car, banks offer a diaspora vehicle loan.
Most banks provide loans to diasporas to purchase a new or old car. These are the standard documents needed to get diaspora automobile loan.
Additional Documents needed to get a Diaspora Vehicle Loan
Most banks require you to qualify for all of the required documents listed below to get a diaspora vehicle or automobile loan in addition to the primary documents required to get a diaspora loan.
- Proforma Invoice
- You need a proforma invoice of the car to be purchased, meaning the initial bill of sales sent to buyers before a shipment or delivery of goods.
- Automobile
- Before getting the loan,banks require you to present the car or automobile to be bought.
Other documents are requested depending on the bank of your choice.
Diaspora Customer Loan
If you are looking to get a loan from your banks for reasons other than to purchase or buy a new/old car, banks offer diaspora customer loans. Diaspora customer loans are given for personal reasons as:
- Purchase of household equipment and supplies.
- Cover domestic or foreign travel
- Medical treatment
- Education fee
The amount of loan given to the diaspora depends on the bank’s capital of your choice and your ability to repay the loan.
Additional Documents needed to get a Diaspora Customer Loan
To get a diaspora customer loan, besides the basic diaspora loan requirements, banks require you to present your reason for the loan and proforma invoice for the machinery or equipment you wish to purchase.