Diaspora car loan in Ethiopia 2023
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Diaspora car loan in Ethiopia
Ethiopian Banks provide different types of loan services which support the diaspora personal asset build or investment. Banks give the term Diaspora to Ethiopian citizens who live outside of the country at least for 1 year and foreign citizens who have Ethiopian origin. Ethiopian Banks provide Banking services to people who are under either of the situation, which is usually called “Diaspora Banking service.”
This service includes Bank accounts, making deposits, saving accounts, and loan services which include house loans, car loan. Diaspora car loan in Ethiopia is a loan service provided for customers to purchase new or used cars either for personal or business use by taking credit from the Banks respectively to their own criterias.
Ethiopia has nearly 28 banks (fully launched) which are authorized under the National Bank of Ethiopia rules and regulations, every bank has its organizational guidelines to follow including loan service.
Find out which are the best banks for diaspora loans in Ethiopia to help you with your banking decisions.
How to get access Diaspora car loan in Ethiopia
Basic requirements to access a Diaspora Vehicle loan in Ethiopia
Diaspora Car loan in Ethiopia service is provided only for nonresidential citizens and nonresidential foreigners of Ethiopian origin in most cases.
Guaranteeing loan services can be different from one bank to another accordingly to the Bank’s rules and regulations, meanwhile, there are also common ground requisitions that are shared among most of the banks.
When a customer requests a car loan in Ethiopia, some essential criteria need to be processed which are listed down below:
- Eligible identification card/passport/ living license(for foreigners living in Ethiopia)
- Loan application form properly filled and signed by the applicant
- Need to have a Diaspora account (deposit)
- Employment and income status of the applicant if she/he is an employee
- For Business owners Financial statements, Renewed trade licenses, and trade registration certificates are mostly requested with expected variety according to the Bank policy; and TIN certificate, Tax Clearance Confirmation might also be requested.
Besides personal qualifications, there are additional factors that affect the acceptance of the application form to access car loan services. Car loan service is applicable for both newly manufactured and used vehicles
- year of manufacturing for the vehicle(maximum eligible up to 15 years of function)
- The vehicle has to be insured until the loan is fully repaid
- In most cases, the applicant would be requested to make a deposit which is half the amount of the loan
- Purchasing agreement/legal documentation between the seller and the buyer
- Along with the direct requisition, there are an additional set of points that the banks use to protect their organization from cash loss during loan services
– If the car to be purchased is in used form and has been functioning for a longer time, the interest rate set for the loan also rises, in consideration of the risk calculation.
– If the customer has a good currency transaction history / agrees to make the repayment with currency the banks usually amend the usual interest rate to a lower rate.
– Income status ( if the applicant is Employed) and the business statement and income status ( if the applicant is a business owner)