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Frequently Asked quesion

What do I need to open account locally?


a) For saving account

•    Identification card: Kebele id card, Employers ID, Driving License, Pass ports and Others.
•    Two recent passport size photographs.

b) For current /Demand account
 
1)    Individual Trader

•    Identification card : Kebele id card, Employers ID ,Driving License , Pass ports and Others
•    Two recent passport size photographs.
•    Renewed trade license and principal registration certificate.
•    Tax identification Number (Tin Number).

2)    Private Limited Company

•    Renewed trade license and principal registration certificate.
•    Memorandum and article of association attested, registered and sealed by the civil status documentation and registration office.
•    Letter of request to open and operate the account.
•    Valid and renewed I.D. card of the authorized person to operate the account.
•    Tax Identification Number (TIN Number).

3)    Share Company

•    Certificate of registration.
•    Renewed trade license in the name of the share company.
•    Memorandum and article association attested, registered and sealed by Documents Authentication and Registration Office.
•    Minutes of the board of directors with regard to the opening and operating of the account.
•    Letter of request to open and operate the account, which shall be signed by the board chairman and bear’s the company’s seal.
•    Valid and renewed I.D. cards of the authorized person to operate the account.
•    All changes should be made according to the provisions set in the memorandum and article of association.
•    Tax Identification Number (TIN Number).


What type of products does the bank give to credit applicant?

 

1. The Bank gives the following types of credit products

a.    Overdraft facility
b.    Overdrawal
c.    Merchandise Loan Facility
d.    Import Letter of Credit Facility
e.    Pre-Shipment Export Credit Facility
f.    Revolving Export Credit Facility
g.    Letter of Guarantee Facility
h.    Term Loan
i.    Motor Vehicles Loan
j.    Construction Machinery Loan
k.    Partial Financing
l.    Syndicate Loan
m.    Agricultural Term Loan
n.    Loan Buyout


If I want information with regard to credit, where can I get the advice?


A2. You can get adequate information from any Lion International Bank’s branch or from the Credit Department at Head Office.


I am starting a new business, can I get a loan?

A3. The Bank has clearly stated in its Credit Processing Procedure that loans can be availed for new businesses as far as the business is legally established, viable and fulfil all the eligibility criteria stipulated in its Credit Processing Procedure. You can get the eligibility criteria for each type of credit product from any branch or the Credit Department of the Bank.


what are the General Eligibility Criteria for Loans and Advances


All customers applying for any type of loan/facility shall fulfill the following general eligibility criteria:

1    All persons engaged in lawful trading activities and creditworthy business (es) is/are eligible to borrow business loans.
2    All persons who have defined and sustainable source of income are eligible to borrow consumer loans.
3    The business credit applicant should present renewed trade license for the current fiscal year or investment license for new projects, principal registration certificate (for companies) and others like municipal license, environmental certificate, and trade name registration certificate, if appropriate.
4    All applicants must present a tax identification number /TIN/ or tax exemption certificate for all of their income. Besides, the following parties shall also present TIN:
i.    Individual applicants (Sole proprietorship and partnership) as well as his/her spouse.
ii.    Major shareholders who owns ≥10% of the total share in a Share Company’s or PLC’s.
iii.    Mortgagor’s and his/her spouse.
iv.    If the shareholders who owns ≥10% of the total share in a share company’s or PLC’s are minors, birth certificate/legally accepted evidence showing same must be presented.
5    The applicant and/or any of its shareholders/subsidiaries shall fully settle any previous loss to the Bank, if any. 
6    The applicant must have never been engaged in tax evasion, or in a breach of exchange and control regulations, or in any other illegal/unlawful dealings or blacklisted by LIB or any other Bank.
7    The applicant must have never been engaged in money laundering activities.
8    The applicant must not have any record of mal-operation of the checking account in the banking system until the rehabilitation period is expired.
9    The applicant shall fulfil at least the required minimum equity contribution.
10    The applicant and/or any of its major shareholders/subsidiaries must not have any non-performing loans in any bank.
11    The applicant’s business must be financially viable, legally acceptable, technically feasible and environmental friendly.
12    Power of attorney, if any.
13    Proforma invoices and catalogues from at least three acceptable suppliers, if needed.
14    Sales contract, if necessary.
15    Bid document or bid award letter, if necessary.
16    Resident permit (for foreign borrowers).
17    Copy of identity card/s of the applicant.
18    Business plan.
19    Financial statements.
20    Forecasted financial statements (Cash flow, Balance Sheet and Income statement).
21    Feasibility studies, if the purpose of the loan is for expansion or rehabilitation of the existing project and for a new project.
22    Ownership certificate/title deed/booklet for collateralized properties.
23    Architectural plan
24    Structural, Electrical and sanitary plans shall be presented for G+1 and above buildings.
25    Bill of quantity, construction permits and other relevant documents, if any must be presented for construction project loans.
26    Memorandum and articles of association, for PLCs and share companies.
27    The applicant has to present all the documents/information demanded by the Bank.


How to open a Diaspora Account?

•    Persons residing abroad can open the account in person or by post in his/her name.

•    Applicants who could not be physically presented to open the account in the domestic banks can use the Ethiopian Embassies, Correspondent Banks or nearby remittance service providers to prove their identities.
•    Opening of a foreign currency account by Power of Attorney is not allowed. However, Power of Attorneys are allowed to withdraw from these accounts provided that the Power of attorney explicitly empowers them to operate these accounts.
•    An individual may open current account in only one of the domestic banks whereas he/she may open fixed deposit accounts in more than one bank.

Foreign Exchange Rate

 Code
USD
GBP
EURO
Buying
22.8176
29.2430
24.4582
Selling
23.2740
29.8279
24.9474