Construction and Business Bank

About Construction and business bank

Construction and Business Bank S.C. (CBB) is a wholly government–owned public enterprise and successor of the Housing and Savings Bank (HSB) which was formed in 1975 through the merger of two financial institutions namely, Imperial Savings and Home Ownership Association, and Savings and Mortgage Corporation of Ethiopia which were nationalized at the on-set of the socialist era of Ethiopia.

HSB's objectives were granting long-term loans for residential housing and commercial building construction, purchase and renovation by mobilizing financial resources through ordinary savings, time deposits and long-term borrowings. For about twenty years since 1975, HSB has made important contribution to the development of housing in the country in which it hitherto enjoyed the reputation as a household name.

Following the market-based economic policy of the country and the ensuing economic reform programs initiated by the government in 1992, HSB was reconstituted as Construction and Business Bank in September 1994 by regulation No. 203/94 with an authorized capital of Birr 71.8 million. The regulation gave CBB the mandate to provide universal banking services. In line with this, CBB has ventured into commercial banking operations stage by stage maintaining construction financing as its core business.

In September 2000 CBB is converted to share company in accordance with the Ethiopian Commercial Code with a capital of Birr 79.0 million.

CBB's Vision

To be the best performing bank in Ethiopia by 2020.

CBB's Mission

"We are devoted to provide banking services to add value to the stakeholders thereby to foster national economic development"

CBB offers various loan types for its customers. Here are the loan types and the requirements needed in detail.

1. . Working Capital Loan

Requirements

1. Written application
2. Marital status (not applicable for private limited companies)
3. For PLC or share company: 
       - Registration certificate 
       - Memorandum of association 
       - Article of association
4. Trade license
5. Feasibility study (where applicable)
6. Balance sheet
7. Income statement
8. Land holding certificate or lease holding certificate (LHC)
9. Approved site plan
10. Approved architectural   plan

2. Residential Loan- Non Resident Ethiopian

Requirements

1. Written application
2. Audited financial statements (if self-employed)
3. Latest salary slip (for employees)
4. Passport
5. Letter from employer specifying 
         - Age 
         - Salary 
         - Term of employment
6. Marital status (document should be authenticated by   authorized organizations).
7. For construction of new house
     - Approved site plan
     - Approved architectural plan
     - Sanitary plan
     - Electrical plan
     - Bill of quantity
     - Work permit
8. For purchase of existing house
     - Approved site plan
     - Approved architectural plan
     - Purchase agreement
9. LHC
10. Minimum own contribution
     - 30% or more of the construction cost or purchase value)

3. Residential Loan for Business Persons

Requirements

1. Written application
2. Marital status
3. Trade license
4. Balance sheet
5. Income statement
6. LHC
7. Approved Plan    
       - Site plan 
       - Architectural plan 
       - Sanitary plan 
       - Electrical Plan 
       - Bill of quantity
       - Work permit
8. For purchase of existing house 
     - Approved site plan  
     - Approved architectural plan  
     - Purchase agreement
9. Minimum own contribution 
      - 30% or more of the construction cost or purchase value)

4. Business Construction Loan

Requirements
1. Written application
2. Marital status (not applicable for private limited companies)
3. For PLC or share company:
      - Registration certificate
      - Memorandum of association
      - Article of association
4. Trade license
5. Feasibility study (if deemed necessary)
6. Balance sheet
7. Income statement
8. Copy of land holding certificate or lease holding certificate (LHC)

           9. For construction of new building 
                  - Approved site plan
                   - Approved architectural   plan
                  - Sanitary plan
                   - Electrical plan
                    - Bill of quantity
                    - Work permit
        10. For purchase of existing building
                   - Approved site plan
                   - Approved architectural plan
                   - Purchase agreement
11. Minimum own contribution 
      - 30% or more of the construction cost or purchase value)