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.