Loan Approval Form

CONFIDENTIAL
GENERAL INFORMATION
1. BRANCH:- Amesit Kilo
2. LOAN ANALYSIS FORM NO፡- SMECC/059/2024
3. NAME OF ORGANIZATION: -E.O.T.C.
4. LOAN REQUEST OF (APPLICANT NAME):- Ato Abel Daniel Demissie
5. AMOUNT REQUESTED:-2,000,000.00/BR. TWO MILLION ONLY/
6. TYPE OF LOAN REQUESTED:- Vehicle Loan
7. PURPOSE OF LOAN REQUESTED:-To Purchase A Vehicle
8. LOAN DURATION: - 12 Years
9. PAYMENT INSTALLMENT MODE: Monthly
10. RECOMMENDATION DATE:- 22/02/2024
11. RECOMMENDATION
11.1. Basis for Recommendation
 MOU signed by EOTC Patriarchate Head office and abay Bank;

 Expecting future benefit of the bank from the deposit amount;

 The applicant fulfilled the eligibility criteria of Vehicle loan for prominent organization employees;

 Repayment capacity of the applicant

To Strength our relationship with the Ethiopian Orthodox Tewahido Church.
11.2. Recommendation of the C&SME Loan Officer
Based on the forgoing analysis, I recommend Long term Prominent Organization vehicle Loan of
Birr 1,950,000.00(Birr One Million Nine Hundred Fifty Thousand only) for purchasing of
Automobile vehicle, for 12 years at 5% Interest Rate per Annum with monthly installment of
birr 18,036.00 against collateral of Automobile vehicle Model, E-STAR Chassis No,
LS6A3E03XPB322865; vehicle capacity, 55KW Origin; China Year of manufacture: 2023 G, C, From
Herana Trading PLC with an estimated value of Birr 1,950,000.00.
Disbursement Mode: -
 The recommended loan for purchase should be disbursed directly to the seller through customer
Account within our bank together with the remaining amount of equity contribution of the
applicant in lump sum.
Condition: -
 The branch has to write undertaking letter to the supplier/seller/ the above approved loan will
be paid after the seller has submitted registered ownership booklet to the branch by
registering at the concerned government organ and the collateral should have insurance
coverage before loan disbursement;
 The ownership title shall be transferred in the name of the applicant before loan
disbursement;
 The loan and Security contracts shall be signed by the applicant and his spouse before loan
disbursement;

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form
 The vehicle collateral should registered with the concerned government organ on 1st degree
basis before loan disbursement;
 The collateral shall be insured and endorsed in the name of the bank before loan
disbursement;
 Stamp duty charges processing fee and revenue stamp shall be collected from the applicant
and its copy shall be affixed on the loan and Mortgage contract in line with the procedure;
 The applicant shall give written standing instruction for the monthly repayment of the loan to
be deducted from his account and to deposit timely an amount expected from his spouse
salary.
The movable collateral (the vehicle to be purchased) shall be registered by movable collateral
Registry system and confirmation shall be obtained from Credit information center and
Portfolio management before disbursement;
 The contract should encompass that: -
1. The interest rate will be applicable until the employee maintains his employment in the
E.O.T.C.P.H.O but if the employee leaves the organization, the interest rate shall be
converted to prime lending interest rate of the sector.
2. The prominent organization E.O.T.C.P.H.O should maintain loan to deposit ratio of 45% or
deposit at any given time shall be 122% the outstanding loan balance of employees availed
with the scheme if not the bank may change the lending interest rate.
3. The Loan interest rate will be applicable until the organization maintains its current account
as per MOU signed but if the organization changes the type of account in to the interest
bearing, the interest rate shall be converted accordingly.
 All other things shall be handled by the branch as per the credit procedure of the bank & External
consumer loan Procedure (volume IV) and also other applicable internal memorandums issued by
the bank..
Advice to the Branch:-
 Follow-up regular repayment of the loan without fail,
 The branch shall strictly follow-up the transfer of the ownership title from the seller to the captioned
applicant (borrower),
 Follow-up the annual renewal of insurance policy of the motor vehicle until the settlement of the loan,
 The branch shall collect all original document of the property.
Fee Structure
 As per the terms and tariff of the bank loan
Recommended by: Getachew Mulu sig.____________Date:- Feb, 22/2024.
APPROVED/DECLINED
Approved as recommended by the H.O CRM officer!
3. Decision of the Credit Committee: - Approved Declined
4. Name and Signature of the Management Credit Committee Members

_______________________ _______________________
Ato Abraham Ejigu (Chairperson) Ato Abebaw Abebe (Member)

____________
_______________ ________________________
Ato Solomon Tefera (Member) Ato Abenet Marew (Member)

5. Management Credit Committee Approval/Decline Date___________________

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form

CONFIDENTIAL
Branch/section:-Amesit Kilo
Loan Type:-Vehicle loan- prominent organization Employee
LAF NO:-SMECC/059/2024
Date Application Received: -22/02/2024
Document Fulfillment Date: -22/02/2024
Recommendation date: 22/02/2024
1. Applicant Information
Name of the applicant Ato Abel Daniel Demissie
TIN of the applicant 0077912545
Marital Status Married
Name of spouse W/ro Meseret Abebe
TIN of the applicant 0088304235
Date of Birth(applicant) 15/01/1980 E.C
Date of Birth (spouse) 07/07/1990 G.C
Name of Employer Ethiopian Orthodox Tewahido Church
Legal Status Religious Organization
Position( applicant) Camera Man
Position( spouse) Statistics
Monthly Basic Salary in ETB (applicant ) 17,861.00
Monthly Basic Salary in ETB (spouse ) 18,514.00
Total 36,375.00
½ of total basic Salary and benefit 18,187.50
Address of the applicant AA CITY; Kolfe S/city;W-
05;H.NO.new;TEL.0910612785.
2. NGO’s Information
Name of Employer Ethiopian Orthodox Tewahido Church
Citizenship of the company Ethiopian
Sector Religious
Legal Status Religious Organization
Address AA City ,Arada S/City /Ethiopia/
Memorandum of understanding signing date 03/02/2015E.C
with the bank

3. REQUEST.
3.1 BRIEF STATEMENT OF THE REQUEST Prominent Organization Staff Vehicle loan of Birr
(INCLUDING LOAN AMOUNT, DURATION 2,000,000.00 for 12 years on monthly repayment basis.
AND REPAYMENT SCHEDULE).
3.2 PURPOSE OF THE REQUEST For Purchase of a Vehicle.

3. COLLATERAL:-
Estimated By;. Mulualem Tsegaye CHECKED BY: Ephream.Gobena. Estimated on: Feb 17, 2024
SECURITY DESCRIPTION( TYPE, LOCATION ) OWNER ESTIMATED ACCEPTABLE Equity

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form
VALUE TO THE Contribution
VALUE(A)
BANK
Automobile vehicle Model, E-STAR Ato Abel Daniel 1,950,000.00 1,950,000.00
Chassis No, LS6A3E03XPB322865; ( After ownership
Vehicle capacity 55KW Origin; China Year of transfer) 0%
manufacture: 2023 G, C.; From Herana Trading
PLC

5. GENERAL INFORMATION ABOUT THE APPLICANT

Ato Abel Daniel is 36 years old and he working as Camera man at E.O.T.C broadcasting service .As
per the employment agreement and the company’s confirmation letter the applicant’s monthly basic
salary is Birr 17,861.00.and his spouse is working at EOTC Addis Ababa Diocese Secretariat Ayer
Tena D/bisrat St. Gebreal and Abune G/menfes Kidus Curch and her monthly basic salary is birr
18,514.00.
Currently the applicant requests the bank to Purchase Automobile vehicle Model, E-STAR Chassis No,
LS6A3E03XPB322865; Vehicle capacity 55KW, Origin; ChinaYear of manufacture: 2023 G, C.; from
Herana Trading PLC in Birr 2,100,000.00 with an estimated value of Birr 1,950,000.00.By considering
1/2 of the applicant and his spouse monthly basic salary against security of the vehicle to be purchase. So
based on the procedure of bank and MOU, he approaches the bank to borrow birr 2,000,000.00 for 12
years on monthly repayment bases.
5.1 BREAKDOWN OF APPLICANT FINANCIAL STATUS
DESCRIPTION APPLICANT Spouse Total
Salary/Monthly Income 17,861.00 18,514.00 36,375.00
1/2 of salary 8,930.50 9,257.00 18,187.50
Deduct other loan repayment from their
salary -
Net repayment capacity 8,930.50 9,257.0 18,187.50
Age of Applicant 36 years & 4 months 25 years and 11 months
Remaining working years 23 years & 8 months 34 years and 1 months
Loan life 12 years
Performa value of the vehicle 2,100,000.00
Total estimation Value of the collateral,
estimated by the bank engineers. 1,950,000.00 -
Maximum allowable Borrowing Capacity of -
the applicant based on the estimated value of
the collateral 100% of the estimation value of
the collateral)as per MOU agreement 1,950,000.00
Advance Payment Amount .00 -
Requested Loan Amount 2,000,000.00 -
Maximum borrowing Capacity with 1/2 of
gross basic salary of the applicant at the
prevailing bank’s interest rate and loan period 1,966,449.19
(5% interest rate; 12 year Loan Period) -
Recommended amount 1,950,000.00 -
Monthly Repayment 18,036.00 -

6. Existing credit facilities of the applicant

6.1With Abay Bank S.C
 He is new customer
6.2. With other banks

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form
As per NBE’s individual credit report enquiry ID 2148702 and 2148703 dated on 22/02/2024, the applicant
doesn’t have credit relation with other commercial banks.
7. Summary of saving accounts movement through our bank by the name of E.O.T.C. bordcasting
service at Amesit Kilo branch as of 22/02/2024 G.C
Account No. Balance Br. 55% of depositApproved Remaining Account
used to Loan Purpose
Loan Amount Amount Type Branch
/O/S/Balance
1462319237132015 32,591,970.60 17,925,583.83 Co. Saving 5 Kilo
total 32,591,970.60 17,925,583.83 13,598,000.00 3,748,583.83

8. LOAN UTILIZATION UNDER THE SCHEME /MOU/

List of Employees who are Request Residential building ,personal and vehicle loan for the case of prominent
organization employee of E.O.T.C broadcasting corporate at Amist kilo branch and the bank accepted the
request and approved the loan Up to now the details as mentioned below ;
Type of Remark
R/no. Name of Borrower Loan Approval Amount
1 Ato Birhanu Sharewu Vehicle 1,650,000.00 5kilo-branch
2 Abel Assefa Zewudu Vehicle 1,220,000.00 5kilo-branch
3 Like memiran Fantahun Muche Vehicle 2,995,000.00 5kilo-branch
4 Zewge Asrat Ayenew vehicle 1,550,000.00 5kilo-branch
5 Elenie Kifle Mortgage 1,133,000.00 5kilo-branch
6 Wondimagegn Birhanu Gubela vehicle 1,400,000.00 5kilo-branch
7 Mesfin G/tsadik Tola vehicle 1,700,000.00 5kilo-branch
8 Mr Hailemariam Solomon Vehicle 1,950,000.00 5kilo-branch
9 Ato Abel Daniel Demissie Vehicle 1,950,000.00 On process
Total 15,548,000.00

9. RISK ASSESSMENT
Financial Risk
 As per the External consumer customer loan procedure of the Bank and the borrower’s commitment to
repay ½ of the applicant monthly basic salary and benefit, financially capable to properly service monthly
loan repayments for the loans. Thus, financial risk is expected to be low.
Ownership Risk
 The Vehicle to be purchased is to be transferred under the name of the applicant and the bank will be
disbursed the approved loan amount after ownership certificate is transferred to the applicant name and
registered at the concerned government organ. Thus, ownership risk is assumed to be low.
Collateral Risk

 The offered collateral is enough to secure the recommended loan amount. Moreover, the collateral will have
insurance coverage.
In relation to the recommended loan amount, since the collateral is movable; the related risk is expected to
be high.
11. SECURITY TO REQUESTED AND RECOMMENDED LOAN RATIO
REQUESTED LOAN AMOUNT 2,000,000.00
SECURITY VALUE 1,950,000.00
RECOMMENDED LOAN AMOUNT 1,950,000.00
REQUESTED LOAN TO SECURITY RATIO 2,000,000.00: 1,950,000.00 (1:0.98)
RECOMMENDED LOAN TO SECURITY RATIO 1,950,000.00: 1,950,000.00 (1 :1)

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form
11. Recommendation
11.1. Basis for Recommendation
 Memorandum of Understanding signed by Ethiopian Orthodox Tewahido Church Patriarchate Head office and Bank;
 Expecting future benefit of the bank from the deposit amount;
 The applicant fulfilled the eligibility criteria of Vehicle loan for prominent organization employees;
 Repayment capacity of the applicant
 To Strength our relationship with the Ethiopian Orthodox Tewahido Church.
12.2. Recommendation of the C&SME Loan Officer;
Based on the forgoing analysis, I recommend Long term Prominent Organization vehicle Loan of
Birr 1,950,000.00(Birr One Million Nine Hundred Fifty Thousand only) for purchasing of
Automobile vehicle, for 12 years at 5% Interest Rate per Annum with monthly installment of
birr 18,036.00 against collateral of Automobile vehicle Model, E-STAR Chassis No,
LS6A3E03XPB322865; vehicle capacity, 55KW Origin; China Year of manufacture: 2023 G, C, From
Herana Trading PLC with an estimated value of Birr 1,950,000.00.
Disbursement Mode: -
 The recommended loan for purchase should be disbursed directly to the seller through customer
Account within our bank together with the remaining amount of equity contribution of the
applicant in lump sum.
Condition: -
 The branch has to write undertaking letter to the supplier/seller/ the above approved loan will
be paid after the seller has submitted registered ownership booklet to the branch by
registering at the concerned government organ and the collateral should have insurance
coverage before loan disbursement;
 The ownership title shall be transferred in the name of the applicant before loan
disbursement;
 The loan and Security contracts shall be signed by the applicant and his spouse before loan
disbursement;
 The vehicle collateral should registered with the concerned government organ on 1st degree
basis before loan disbursement;
 The collateral shall be insured and endorsed in the name of the bank before loan
disbursement;
 Stamp duty charges, processing fee and revenue stamp shall be collected from the applicant
and its copy shall be affixed on the loan and Mortgage contract in line with the procedure;
 The applicant shall give written standing instruction for the monthly repayment of the loan to
be deducted from his account and deposited an amount expected from his spouse.
The movable collateral (the vehicle to be purchased) shall be registered by movable collateral
Registry system and confirmation shall be obtained from Credit information center and
Portfolio management before disbursement;
 The contract should encompass that: -
1. The interest rate will be applicable until the employee maintains his employment in the
E.O.T.C.P.H.O but if the employee leaves the organization, the interest rate shall be
converted to prime lending interest rate of the sector.
2. The prominent organization E.O.T.C.P.H.O should maintain loan to deposit ratio of 45% or
deposit at any given time shall be 122% the outstanding loan balance of employees availed
with the scheme if not the bank may change the lending interest rate.

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH

 Loan Approval Form
3. The Loan interest rate will be applicable until the organization maintains its current account
as per MOU signed but if the organization changes the type of account in to the interest
bearing, the interest rate shall be converted accordingly.
 All other things shall be handled by the branch as per the credit procedure of the bank & External
consumer loan Procedure (volume IV) and also other applicable internal memorandums issued by
the bank.
Advice to the Branch:-
 Follow-up regular repayment of the loan without fail,
 The branch shall strictly follow-up the transfer of the ownership title from the seller to the
captioned applicant (borrower),
 Follow-up the annual renewal of insurance policy of the motor vehicle until the settlement of the
loan,
 The branch shall collect all original document of the property.
Fee Structure
 As per the terms and tariff of the bank loan
To The Head Office Credit Committee.
I confirm that the receipt of the following documents in the process of Analyzing Credit request:
 Employee information from HRM of the organization both applicants and spouse.
 Application Letter,
 TIN of the applicant,
 Marital Status of the applicant,
 Estimation,
 NBE CIC report,
 Trade license and tin No of the seller
 Performa invoice
 Declaration form
Prepared By: - Lake Mulugeta (CRM officer) ________________________ Date: Feb 22/2024

Loan Request of E.O.T.C Staff; Abel Daniel @ Amesit kilo BRANCH