Interest Free Banking
ECX Wadia Current Accounts
ECX Wadi’ah Current Accounts
ECX offers an integrated warehouse system from the receipt of commodities based on industry-accepted grades and standards for each traded commodity by type to the ultimate delivery. Commodities are deposited in warehouses operated by ECX in major surplus regions of the country. These accounts are opened for the members of the Ethiopian Commodity Exchange to facilitate the trading of Commodity at ECX trading centers. The account opening and closure process is carried out by the Ethiopian Commodity Exchange, and the Bank’s Customers’ Account and Operation facilitate the opening of the account. The account is opened by members who are not on the mal-operations list.
Diaspora Investment Financing
Diaspora Investment Financing
Coopbank offers an investment credit facility to enhance the potential of Diasporas to develop larger, more productive businesses investing in meaningful programs in their home country that can create jobs and economic growth back home.
Features
- Term loans for financing projects such as manufacturing or purchase of capital assets,
- The bank can finance up to 80% of the feasible project promoted by the diaspora,
- 20% of the project shall be financed by the promoter from his/her own equity,
- The equity contribution made to the project shall be transferred via Coopbank.
Benefits
- It helps to expand an existing business,
- It helps to engage in new investment in different sectors such as services, manufacturing, hotel, construction, real estate, etc.
- The amount of the loan is determined by the projected cash flow and income of the borrower as well as the cost of the project,
- It has an attractive rate with a reasonable repayment plan,
- Fast processing and approval time.
Requirement
Documents required to borrow for projects include documents such as:
- Investment Loan application forms that are properly filled and signed by the applicant,
- A valid passport and/or identification card,
- Investment license,
- TIN,
- Landholding certificate/lease agreement,
- An approved construction plan,
- Memorandum and Article of Association (if any), and
- Project proposal.
Eligibility
- Non-resident Ethiopian nationals living and working outside Ethiopia,
- Non-resident foreign nationals of Ethiopian origin,
- Companies owned by the above-mentioned non-residents and located outside the Ethiopian territory for more than one year,
Ethiopian nationals living and working abroad who can produce authenticated documents.
Mudharabah Restricted Investment Account
is a fund that will be specifically utilized to a particular project of the account holder choice. In return, the account holder will be entitled to an agreed percentage share of the investments income or proportionally bears the loss of capital.
Features
- Restricted Investment Deposit account is an account where the investor restricts the manner as where, how and for what purpose the funds are to be invested by Coopbank Islamic.
- The minimum deposit amount accepted in the restricted investment account shall be Birr Five Million.
- The profit-sharing rate on restricted investment deposit shall be determined by the Bank’s terms and tariff structure and the loss sharing is to the extent of the capital contribution.
- All the agreed terms and conditions of the investment deposit shall be clearly articulated in the investment deposit contract to avoid any possible disputes that may arise from the capital providers.
- The Bank may provide the Investment Deposit Certificate to the Rab-ul-maal/ capital provider.
- Investment Deposit Accounts are bounded by period, if the capital providers withdraw the money from investment deposit account before the agreed period, he/ she may forfeit the accrued profit margin as per the details of the investment deposit contracts.
Benefits
- The Depositor's will share investment Income (profit) from an investment conducted by the CoopBank Islamic.
- This investment is conducted in accordance with Shariah principles.
- Depositors can dictate as to as where, how and for what purpose their funds are to be invested.
- They can advise the bank to invest on areas of their interest.
- Please contact Coopbank Islamic to get more detail information and advices.
Upcoming Services
Upcoming Services
- E-banking
- Agent and Mobile Banking
- Ijarah Financing
- Zakat collection and Administration accounts
- Different types of Mudaraba accounts such as
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- Mudaraba Gamme
- Mudarabaa Sinqee
- Mudarabaa Dargaggoo
- Mudaraba Cooperatives
IFB Trade Service
Wakalah Letter of Credit : –
written undertaking by a bank given to the seller at a request and/ or the instructions of the buyer under wakala contract, to make payment or to accept and pay bills of exchange (Draft) drawn by the seller up to a stated sum of money within a prescribed time limit and against stipulated documents provided that the terms and conditions of the credit are complied with.
Murabaha Import Letter of Credit: –
is a contract whereby Coopbank buys goods for the customer (applicant) and the customer agrees to later buy the goods from the Coopbank through a resale at a mark-up price.
Musharaka Letter of Credit: –
is a contract whereby the value of the letter of credit issued by Coopbank and the profits of the partnership transaction are shared between Coopbank and the customer based on an agreed ratio.
Wakala Export Letter of Credit: –
is a condition where the exporter appoints Coopbank as his/her agent to collect receivables on his/her behalf.
Wakala Documentary Collection (Wakala Cash Against Document – CAD):
It is type of transaction by which importer and exporter conclude a contract, accordingly the exporter deliver documents to the importer through his/her bank to buyer bank through which, the title for purchased goods is released to the buyer after the total sale price is collected in full.
Wakala Advance Payment: –
a transaction in which an importer makes payment for items to be imported prior to the shipment of goods. The importer must trust that the supplier will ship the product on time and that the goods will be as their agreement because it creates a lot of risk factors for the importers.
Wakala Consignment Basis Payment (for Export): –
It is a transaction method in which the local exporter (a consignor) exports the goods to the foreign importer (a trustee) who pays (remit) the exporter only as and when the goods are sold.
Contact Coopbank Islamic for more detail information and advices.
Kafala
Kafala
Kafala (Letter of Guarantee Facility): - is a written promise by the bank to compensate (pay sum of money) to the beneficiary (local or foreign) in the event that the obligor fails to honour his/her/its obligations in accordance with the terms and conditions of the guarantee/agreement/ contract. Types of Kafala/Letters of Guarantee offered by Coopbank:
- Bid Bond
- Performance Bond
- Advance Payment Guarantee
- Retention Payment Guarantee
- Letters of Indemnity for Missing Documents
- Customs Duty Guarantee
Please contact Coopbank Islamic to get more detail information and advices.
Security Contracts
Security Contracts:
- Surety (Kafala) Contracts- for performance guarantees,
- Transfer of debt (Hawalah) contracts - for Local/Foreign Money Transfer,
- Pledge and mortgage (Rahn) contracts - for debt collateral.
Murabaha Pre-Shipment Financing Facility
Murabaha Pre-Shipment Financing Facility
Murabahah pre-shipment export financing is a facility extended for the purchase of raw materials and/or exportable goods. The Bank shall purchase goods that are to be exported at price that is less than the price agreed between the exporter and the importer. The exporter then exports goods at the value of foreign sales contract and thus earns profit.
- Please contact Coopbank Islamic to get more detail information and advices.
Murabaha Financing
Murabaha is a particular kind of sales where the bank expressly mentions the cost it has incurred on purchase of the Asset(s) and sells it to a customer, by adding profit as per bank's terms and tariffs.
It is a contract of promise to buy and to sell commodity, machinery, vehicle etc. on agreed profit added to the cost (mark-up). Murabaha transaction is treated as a cost-plus profit sale.
Features
- The price of goods and Bank's profit on Murabaha Transaction should be fixed and known to both parties at the time of contract. The cost (all direct expenses in acquisition of goods such as invoice price, transportation, UC charges, marine /in transit insurance, sales tax etc.) and profit element of the selling price must be separately identified.
- ln kind exchange/transaction of items of gold, silver or currencies cannot be carried out in Murabaha.
- A Murabaha contract shall not be rolled over because the goods once sold by the bank become property of the customer, and, hence, cannot be resold to the same or other banks for the purpose of obtaining further financing.
- A customer in the contract are required to make a security deposit for Murabaha transaction.
- Coop bank shall deduct the amount of actual loss from the security deposit in case the customer does not fulfill his/her promise to purchase the asset/goods.
- Murabaha depicts the following characteristics.
- The bank buys goods for Murabaha sales from the vendor and pay for it.
- The bank enters in to the Murabaha contract with a customer and delivers the goods
- The customer pays the bank in lump sum or installment over the contract period.
Murabaha can be financed in the form of: -
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- Murabaha Term Financing,
- Murabaha Revolving Financing Facility,
- Murabaha import Letter of Credit Facility,
- Murabaha Pre-Shipment Export Financing Facility,
- Murabaha Post Shipment/Revolving Export Facility,
- Murabaha import Letter of Credit Settlement Financing.
- Please contact Coopbank Islamic to get more detail information and advices
Musharaka Financing
Musharakah Financing
Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profit and losses arising from a joint enterprise or venture.
The account will be launched soon, taking into consideration all the principles of shariah associated with it.
Please contact Coopbank Islamic to get more detailed information and advice