The Commercial Bank of Ethiopia (CBE) has launched a scheme under which it will grant mortgage loans to nationals in the diaspora.
The bank in a statement issued on Friday (5 October) said the loan targets non-resident Ethiopians and foreign nationals of Ethiopian origin.
CBE chief Bacha Gina said the product was part of the bank’s vision to serve and grow together with its customers.
The loan, which can only be used to purchase or construct residential buildings, has a maximum maturity period of twenty years. Applicants for the loan are expected to contribute a minimum of 20% of the value of the building they want to buy or build.
The loan, which will be granted at a minimum interest rate of 8.5% per annum, can be settled at any point in time without additional charges.
The CBE is the Ethiopia’s largest commercial bank and holds approximately 67% of deposits and about 53% of all bank loans in the country.
The move by the bank is part of Prime Minister Abiy Ahmed’s efforts to woo the diaspora to play a more active role in the economy. The government recently removed the current diaspora account limit of US$50,000. Diaspora account holders can now save unlimited amount in Forex.
Click here for the details of CBE’s mortgage loans for Ethiopians in diaspora