Home Loan is a loan extended to individuals that want to build, purchase, renovate, or expand existing residential buildings or apartments/ flat, and/or to construct fence.
For salaried applicants, the maximum loan repayment period is determined by deducting the applicant’s age from the official retirement age and based on the condition that the loan has to be fully settled one year before the retirement age, but it shall not exceed a maximum of 15 and 10 years period for resident and non-resident Ethiopians, respectively. For self-employed applicants, the maximum loan repayment period is determined based on the applicant’s income, but it shall not exceed a maximum of 10 years period.
The loan shall be repaid in equal monthly installments with maximum grace period of up to 18 months from the date of first loan disbursement for construction of new houses and 6 months for purchased houses.
The loan shall be secured against mortgage of the house to be purchased or constructed.
All other types of security acceptable to the Bank
Clik here to read about the General Eligibility Criteria to apply for consumer loans.
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