In addition to the General Eligibility Criteria, the customer should fulfil the following requirements:
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The Bank may extend a fresh Overdraft Facility to applicants that do not have an existing Overdraft Facility with other banks. However, the Bank may buy-out the Overdraft Facility with the other bank, provided that the customer has good utilization of it and his/her/its current assets also justify the proper utilization of the Overdraft Facility.
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A fresh Overdraft facility may be extended to an applicant who has established at least a one-year banking relationship with the Bank as a borrower or depositor. However, depending on the nature and type of business, the Bank may entertain customers that stayed in business for less than one year.
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As the nature of an Overdraft Facility is risky, lending officers shall be aware of the inherent risks and require more collateral coverage by considering the nature and types of collateral.
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The customer shall be encouraged to present audited financial statements for any Overdraft facility request. However, for Overdraft facility request of Birr 5 million and above, the customer shall submit audited financial statements of the latest ended fiscal year if he/she/it stayed in business for a year or above. Whereas, for an Overdraft facility request below Birr 5 million, the customer shall present at least provisional financial statements.
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The outstanding balance of the Overdraft Facility must be within the approved limit at the time of the processing of the renewal request.
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