Development Bank of Ethiopia
Operational Area (s)
Development Bank of Ethiopia (DBE) operates almost all over the country.
Some of the areas are:
Number clients served so far
Number of Branches Opened so far
has 32 all over Ethiopia.
DBE shall continue operating in the above major towns of the city. It uses
mobile banks whenever it is necessary to go to some remote areas in the
Term: This is a loan to be paid back within a year
Term: This is a loan to be paid back within one to five years
of the Loan:
Term: This is a loan to be paid back within five to fifteen years
of the Loan:
Sectors Financed by the Bank
Bank provides loans for financing the establishment and expansion of
agricultural, agro-industrial, transport, and communication, mining and
energy, education, health, hotel, tourism and other sectors of the economy.
purpose of Comittement to the success of the project to be financed, the
applicant shall be required to make a contribution towards the project cost.
The level of borrower’s contribution shall not in any event be less than
30% of total project cost.
to Second hand Machines]: the Bank does not normally finance the purchase of
second hand items.
terms and Conditions
(a) Interest Rate
interest rate on loans = 9.75%
charge = 0.75%
requires that its loan be secured by a first-degree mortgage on fixed asset.
This could be building, machinery and equipment or vehicle depending on the
specific nature of the project.
case pf projects located in rural areas (out side of municipality), the Bank
requires 100% collateral outside of the project. However, for projects
located in urban areas, 125% of the loan including fixed assets of the
project is required.
fixed assets of a project as well as collateral are required to be covered
by appropriate insurance policy with DBE as a co-beneficiary until the loan
is fully settled.
repayment period is determined taking into account the profitability and
debt servicing capacity of the borrowing concern as well as the economic
life of major investment items.
Maintenance of Financial Records
borrower is required to keep sound and acceptable financial records.
Bank shall give its clients maximum grace period that involves the period up
to the commencement of operation and the grace period shall not exceed three
Some of the Documents required from a borrower to establish a new
on the type of the project, applicants may be required to present documents
the ones mentioned above.
to Legal Entities
organizations are required to submit the following additional documents:
involved in Loan Processing
1.Borrowers first contact the Clients’ Guidance and Advisory Desk
(CGAD) of the
2.For detail discussion on loan application, the project idea, background, equity
etc, the borrower is forwarded to the Loaning Department;
3.The Department may either accept or reject the application at prima facie
based on policy or technical grounds;
4.Appraisal work is carried out by the loaning division, checked by the
General Manager, commented by the loan committee and forwarded to the Board
of Management for approval.
business plan should be presented by borrowers to get loans from the DBE.
Micro and Small Enterprise Sector Operators
DBE has a plan to finance Micro and Small Enterprise operators through group loans, without physical collateral, but group liability.
to avail loan fund to Micro Finance Institutions (MFIs)
is working on the possibility of financing MFIs, on a concessionary lending
rate, in collaboration with the
International Fund for Agricultural Development (IFAD).
services of the Bank are accessible through its branch offices and through
cooperatives on-lending channels.
of revising loan policies
Bank operates in pursuant to the overall economic policy and development
strategy of the Federal Government.
P.O.Box: 1900, Addis Ababa, Ethiopia
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