1. Background
- Economic benefits of tourism to a national economy is straightforward and it is associated with creation of new jobs, decrease in the levels of unemployment, stimulation of production of products and services to be consumed by tourists and others. Therefore, significance of tourism for both government and private sectors is enormous, such as foreign currency earnings.
- There is considerable business opportunity in this sector for Banks.
- Thus, Awash Bank has made long standing business relationships with tour and travel enterprises and provides them different banking products and services.
2. Financial Products and Services for Tour and Travel operators
2.1. Special Vehicle Loans and Advances for Tour and Travel operators
- Awash Bank provides Vehicle term loans to Tour and Travel Operators at a competitive rates.
Eligibility
- The Business shall meet other eligibility requirements as given in the credit policy of the Bank
Proof of Activity
- The applicant must be in possession of registration / licenses,
- The license must be renewed and relevant at the time customer applies for the loan.
Equity Contribution
- The maximum quantum of credit facility shall be 80% of the total purchase price of the vehicle.
- The remaining minimum of 20% shall be contributed from the business own capital.
Interest Rate
- Interest rate offered to Tour and Travel Operators is lower and further decreases as the amount of foreign currency generated and channeled to the Bank increase in a given period of time as agreed.
Conditions to be Full filled to Enjoy the Loans
To enjoy loan at the given competitive interest, the business institutions should have to meet all minimum requirements sated by the Bank
Working Capital Finance for Tour and Travel operators
- These are also Term loans that are provided help to bridge the finance gaps of Tour and travel operators in perusing their regular operations.
- Working capital requirement, if any, for tour and travel operators may be considered on the lines the Bank does for other
