National Bank of Ethiopia disclosed today that it is in the process of approving a draft regulation that would allow Ethiopian banks to lend money on the basis of non-fixed asset collateral
So far, the practice was borrowers were given loan on the basis of fixed asset collateral.
The new policy is informed by decision to facilitate access to finance for Ethiopians.
As well, citizens with no fixed or non-fixed asset but with innovative ideas are to get loans on the basis of their innovation project, disclosed governor of the National Bank, Yinager Dessie, as reported by state affiliated FBC.
Recently, Ethiopian state banks unveiled plans to launch loans to finance vehicles for small business owners and for those who are interested in embarking on business activities.
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