Qard
A financing in which the bank gives the customer cash that will be paid in the same amount in an agreed future date. Under this type of financing the bank currently is providing the following products
- Qard-Pre-shipment: is a financing product that the bank avails to exporters. It is a pre-shipment facility where the bank finances and accepts the same amount of money i.e. there is no profit to be charged here while the export proceeds will be channeled through the bank.
- Qard-Employment Agency: is a financing product provided for individuals and companies engaged in employment agencies to obtain a trade license as per the requirement of the Ministry of Labor & Social Affairs i.e. USD 100,000 equivalent in Birr.
Financing Features
Qard - Pre-shipment
- Extended against a presentation of a bona fide sales contract or a proof of L/C document opened or concluded with Internationally recognized buyers or against acceptable collaterals
- The amount of Qard Pre-shipment on sales contract and/or with the opening of irrevocable L/Cs range from 20 to 90 % depending on the track record and reputation of the customer in the business and the type of commodity to be exported
- The bank expects no profit from the borrower
Qard – Employment Agency
- Extended for businesses to engage in employment agencies against acceptable collaterals. Entitlement Employment Agency businesses
- Exporters with rich experience in the sector
