Deposit & Credit


Nib International Bank receives various common and special types of deposits. The following are types of deposit accounts.

1. Savings Deposits

If one wants to make the most out of his/her spare money, he/she could save it at Nib International Bank. Only birr 25 is needed to open a savings account.

2. Fixed Time Deposits

Type of deposit which is repayable after a pre-determined period of time. An attractive interest rate would be paid based on tenure and the amount of money to be deposited.

3. Demand Deposit/ Checking Accounts

This is a kind of account where customers operate transactions using checks. Individuals, business firms, NGOs, international & governmental organizations and others can open checking accounts

4. Zero Balance Account 

ZBA is a type of checking account withdrawn by checks through subsequent transfer of funds from simultaneously opened savings accounts.

5. Children’s Trust Account

It is a special type of account with attractive interest rate where parents or guardians deposit money for education, health or any other intended future benefit for their children from birth to the age of 18 years.

Credit Service

Nib International Bank currently offers services for diverse credit needs with flexible borrowing options, and terms of repayment.

The department is responsible to proactively perform customer relationship management activities for managing the entire loan process from receiving loan applications directly from customers to the final administration of loans.

The Bank presently extends credit facilities for the following economic sector

  1. Agriculture
  2. Building and Construction
  3. Domestic Trade and Service
  4. Import
  5. Export
  6. Manufacturing or industry
  7. Hotels and Tourism
  8. Transport
  9. Financial institution
  10. Mines, power and water

The Bank provides the following two types of Credit Products

  1. Loan  and advances
  2. Guarantee products

Loan and Advances include Overdraft, overdrawal, merchandise loans, term loans, advance on export and import. Loan and advance are further classified into:

  1. Short term facilities that include overdraft facilities, temporary overdraft facilities, overdrawals, merchandise loans, all types of import and export advance and term loans with maturities of less than two years.
  2. Medium term facilities that are term loans with maturities greater than two years and up to five years.
  3. Long term facilities that are loans with maturities greater than five years.

Guarantee products are contingent liabilities which include all types of guarantees such as advance payment guarantees, bid bond guarantees, performance guarantees, retention money, customs bond etc.

An overdraft is a form of short term credit facility by which a customer may be allowed to draw beyond his/her/its current account up to a prescribed limit. The facility is usually used to bridge short-term working capital constraints arising in business between receipt of funds and disbursement of funds. Overdraft facilities are availed for the various sectors described under categorization of products here above. The facility is renewable every six months.

Temporary overdraft
Temporary overdraft facility is an overdraft account that allows for a deserving customer to draw a specified amount of fund over and above the overdraft limit or current account in order to meet unexpected seasonal cash shortage.

An overdrawal is a temporary facility that allows a deserving customer to draw a specified amount of fund over and above the overdraft limit in order to meet unexpected seasonal cash shortage.

Term Loans
Term loans are credit facilities with structured repayment to be effected within a certain period of time. Repayments of a term loan shall be in with the cash flow program of the customer and nature of business.  A term loan’s repayment can according is monthly, quarterly, semi annually, annually or at lump sum payment. Truck loans, Automobile loans, Machinery purchase loans etc are also type of term loans but their specific requirements may differ.

Merchandise Loan
A Merchandise loan is a short term credit facility provided by the Bank against physical pledge of merchandise good or documentary evidence (letter of credit, export documents, warehouse receipt…) as collateral for the loan. Merchandise loan shall be availed for a period of six months but depending on the nature of the business, revolving merchandise loans can be availed which are renewable every six months. Merchandise loans are pledged at a certain percentage proportion of the value of the merchandise to be pledged.

Letter of Credit Facility
The Bank approves letter of credit at appropriate margins depending on the credit worthiness of customers, the nature and marketability of products to be imported. LC facility is a credit product that the Bank extends to importers, upon payment of a certain percentage of the value of L/C . Accordingly, L/Cs are opened with a certain percentage of margins and settled upon arrival of documents. The facility can be either for one time or revolving (i.e. for  a specified period of time – usually one year)

Project Financing
Project financing is an area where the Bank is involved and finance projects in the medium and long term range.

Required Documents for all Applicants

  1. Application Letter
  2. Renewed Trade License
  3. Tax Identification Numbers (TIN)
  4. Recent Tax Clearances
  5. Memorandum and Articles of Association (if PLC, S.C. etc)
  6. Audited Financial Statement
  7. Ownership Documents such as Land Holding Certificate, Ownership Booklet, etc
  8. Marriage Certificate of Borrowers and Mortgagors

Specific Requirements for Exporters

  1. Export plan by type and quantity
  2. Export sales contract (Bona-fide order from foreign buyer)
  3. Past export performance Condition of warehouse and processing plant

Specific Requirements for Importers

  1. Past import performance
  2. Pro-forma invoices
  3. Approved purchase order (if any)
  4. Letter of credit opened
  5. Marketability of the goods to be imported

Specific Requirements for Manufacturer

  1. Full description of installed machine including country of origin, year of manufacture, status and etc
  2. Production capacity
  3. Availability of spare parts
  4. Availability of raw material
  5. Raw materials consumption (Local and foreign)
  6. Marketability of the goods to be manufactured and sale outlet

Specific Requirements for Project Financing

  1. Comprehensive feasibility study
  2. Bill of Quantity
  3. Certificate of ownership
  4. Approved construction plan
  5. Lease agreement and receipt of lease amount paid
  6. Project implementation schedule
  7. Agreement with contractors, manufacturer or supplier