Common Types of Collateral
The common types of collateral that can be used to secure a loan with commercial banks in Ethiopia are listed below. The appropriate collateral will vary depending on the amount, type and terms of the specific loan product.
- Fixed assets (houses, buildings)
- Motor vehicles
- Cash and cash substitutes, deposits (savings accounts; current accounts; fixed time deposits)
- Machinery and equipment
- Bank guarantee (local and foreign)
- Treasury bill • Government bonds
- Merchandise pledge
- Trade receivables
- Share certificates.
Common Loan Products Provided by MFIs
Microfinance institutions in Ethiopia provide the common loan products listed below:
- Micro and Small Enterprise Loans
- Small and Medium Business Loans
- Small Loan
- Agriculture Loan
- Micro-lease Loan
- Short-term Loan
- WEDP (Women Entrepreneurship Development Project) Loan
- Group Business Loan
- Clean Energy Loan.