Ephrem Tamiru and his daughter wedding dance
Applicants for the 4th round of training!
The reason why this note is necessary is that many people know the basic rules of the bank, and a small number of them know that there are no conditions for the loan, that the bank gives them cash, that the loan has no service charge, and that it is possible to engage in sectors that are only used for service, not for production (for example: opening a shop, hair opening a house, providing a ride-hailing service), that registering for training alone ends up being a borrower or that they are ready to borrow, that they can rent out production equipment to manufacturers and service providers engaged in other similar sectors after receiving it from the bank, that the loan is given only to those who are already in the production business, and such ideas are still prevalent. Because they exist.
The following points are mentioned here separately because everyone should understand them in detail from the bank's detailed requirements, not because they are the only ones.
Point One: What is Lease Financing?
Lease financing is the service provided by the bank to small and medium enterprises by purchasing capital goods and providing them for rent through the hire-purchase modality.
Point two: Who are small and medium enterprises (SMEs)?
In terms of the mission given by the Ethiopian Development Bank, "Small and Medium Enterprises (SMEs)" means those who have or employ more than six employees and whose total registered capital is between Birr 500 thousand and Birr 15 million. it is)
Point Three: What does the bank offer to qualified applicants under this lease financing system?
Capital goods only! Purchases and rents capital goods or mavens used to produce capital goods for applicants who can use capital goods for their projects; Once the enterprises have paid the rent in full, the capital goods become their own property.
Point Four: What criteria will applicants qualify for this service (mainly)?
[A] Who has attended the training provided by the bank and received a certificate (whoever is eligible to receive a certificate, only those who have attended the training without interrupting all five days)
[b] When the project proposed by the applicant meets the bank's criteria and its feasibility has been studied
[C] When he is able to contribute the necessary 20% operating contribution (this 20% is calculated from the total project cost provided for lease financing)
Point five: Why is it used as a contribution for operation?
This applicant's contribution is the client's deposit that is released to the resource provider as an 'operational' payment as required by the project to help the project's productivity and smooth work process.
Point Six: What does the lease payment include for a customer who has received the capital goods from the bank and started working under lease financing?