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Deposit

Savings account is an interest bearing, deposit that Omo Bank given to for physical and legal persons (Individuals, organizations and associations) who can fulfill the Bank’s requirement and are legal.

  1. Current account:A type of bank account that allows individuals or businesses to store or withdraw money for everyday transactions.
  2. Demand account:- A deposit that can be withdrawn or debited on short notice, such as a checking account.
  3. Term deposit/time deposit:- a deposit that is kept for a specific period of time, such as a certificate of ( CD.

Term Loan /investment:

A Term Loan is a loan granted for working capital and/or project finance to be repaid within a specific period with interest. The loan is repaid in a lump sum on maturity, or in periodic installments (i.e. monthly, quarterly, semi-annually, annually), depending on the nature of the business and its cash flow. The Bank extends short, medium and long term loans.

  1. Individual and group loan

Loans or credit services are both types of bank-issued debt that serve different needs. They are both banking products that provide capital to the borrower but different in terms.

  1. Micro and small enterprise loan

A Micro and small enterprise loan is a loan availed to the Micro and small enterprise Institutions mainly in the form of term loans that are repayable within short –to medium terms.

  1. Energy supply technology loan

Loans that are specifically designed to finance energy projects.

  1. Agricultural loan

Agricultural loans are used to fund production of a variety of farming activities such as production of crops, plantation, harvesting of agricultural products, processing of the products and marketing the final outputs, breeding of livestock, cattle fattening, dairy farm and provision of agricultural services;

Agricultural loan is extended to finance temporary working capital and project financing needs for borrowers working in agricultural sector;

It is used to finance for purchase of agricultural inputs (fertilizers, improved seeds and chemicals), land development, construction works to be used for the agriculture, etc.;

Agricultural loans for purchase of agro-processing machinery and equipment (such as water pumps, generators, combine harvesters, tractors, vehicles, coffee processing machines etc.), for construction of storage facilities, dairy production, poultry production and livestock fattening activities etc.

 The Bank will give special priorities to MSMEs so as to finance the aforementioned financial requirements.

  1. Other agricultural input loans

It is a short-term loan granted to MSMEs, cooperatives, associations, commercial farmers and individuals engaged in agricultural sector, or regional states for the purchase of agricultural inputs other than fertilizer – like improved seeds, and/or agro-chemicals.

  1. Agricultural investment loan

 

  1. Agricultural machinery loan

These are loans granted to MSMEs, cooperatives or individual farmers who are engaged in farming and agricultural related activities on commercial/small/medium scale or to businessmen who are engaged in agricultural machinery renting business for the acquisition of agro-processing machinery and equipment (such as water pumps, generators, combine harvesters, tractors, coffee processing machines, etc.

  1. Construction machinery loan

Construction machinery loan is a loan extended in the form of a term loan for the purchase of new construction machinery such as dozers, graders, loaders, excavators, scrapers, rollers, asphalt pavers, crushers, concrete batching plants, concrete pavers, cranes, drilling rigs, wagon drills, chip spreaders, and concrete mixer mounted on trucks.

  1. Manufacturing loan

The Bank avails loans to facilitate manufacturing activities of small, medium and large-scale industries;

Credit to this sector can be in the form of working capital to cover the fund required for the purchase of raw materials and all the inputs required to produce the goods and investment loans for procurement of machinery, equipment and civil works. Such loans are also granted to manufacturing enterprises that make use of agricultural raw materials and processing inputs.

  1. Motor vehicle loan

  A Motor Vehicle Loan is a term loan granted for the purchase of new motor vehicles for borrowers in business sectors..

  The loan does not, however, include the cost of spare parts or luxury items;

The vehicle to be bought should be held as collateral and registered with the legally empowered organ.

  1. Syndicate loan  
    Syndicate Loan is a form of term loan that is provided by and shared among the Bank and other financers. The term of the loan is often medium to long in nature;

  2. Idea financing

Idea financing is a term loan that is extended to individuals/groups for implementing scientific studies, which has recognition in invention and innovation by the concerned government organ;

 The loan can also be granted for promotion and advertisement of artistic and intrinsic societal cultures, commercial/mass production and marketing of creative ideas that have obtained recognition from the Intellectual Property Right Protection Office;

The Bank may extend the loan for a maximum period of seven years with one year grace period;

  1. Partial financing

  2. Loan buyout

Loan Buyout is a type of arrangement wherein the Bank buys loans from other Banks. This is done when it is believed that buying of the loan is beneficial to the bank;

  1. Interbank lending

The Bank may borrow from or lend funds to other banks/financial institutions. These inter-bank money market transactions shall be executed in accordance with the NBE directives.

An Inter-Bank Lending is a short-term loan extended by one bank to another to alleviate liquidity shortage of the applicant bank; 3.4.12.2 In rendering this credit service, the bank shall evaluate the request based on the banking business performance indicators of the applicant bank;

The Bank may negotiate on the lending interest rate with the applicant;

In addition to the General Eligibility Criteria, the customer shall fulfill the requirements:-

 

  1. Equipment /machinery lease financing

Equipment/Machinery Lease Financing to the Lessee OMO Bank Credit Procedural Manual

Equipment lease financing for the lessee is a short-term loan provided to lessee as working capital for renting/leasing of new capital goods;

The lease agreement may require periodical repayments or at lump sum over the lease period;

The Bank loan disbursement shall be according to the lease agreement made between the lessee and lessor. The bank, as per the lessee’s written authorization, may directly disburse the loan in lump-sum or periodic installments to the lessor’s account;

International trade loan

This loan category comprises both export and import related business activities.

    1. OVERDRAFT:-

      Overdraft Facility Is a form of credit facility by which a customer may be allowed to draw beyond the deposits in current accounts for the sole purpose of the day-to-day operational needs of a viable and ongoing business; it is a facility repayable on demand.
  • Special Overdraft to Exporters
  • Temporary Overdraft Facility (exceptional)

Temporary Overdraft Facility

The Bank may extend Temporary Overdraft Facility to some creditworthy customers of the Bank for repayment period not exceeding three months to relieve their temporary working capital problems;

The facility cannot be extended for a further period, but if there are compelling reasons acceptable to the bank, it may be extended not more than two times within a year;

  Extension of the temporary overdraft facility shall be as per the pertinent NBE’s directives;

  • Overdraw from Overdraft or Current Accounts