Credit products

Module 02 / 5 · 60 min

Match the purpose and cash cycle of a need to the product built for it, because a wrong product is the first step toward a problem loan.

In this module you will learn to

Describe the main product families and their key terms
Match loan tenor to the life of the asset or the length of the cash cycle
Read an overdraft statement for turnover and swing
Choose between overdraft, overdrawal, merchandise loan, L/C facility, pre-shipment advance and guarantee

Built on

Erudite Africa training module: Level 1: Credit Foundations (October 2026)
Erudite Africa credit training program overview and Ethiopian context module (October 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
NBE directives as listed in the lessons, including SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/91/2024 and CRB/02/2019
Ethiopian laws as cited: Banking Business Proclamation No. 1360/2025, Movable Property Security Right Proclamation No. 1147/2019, Proclamation No. 97/1998

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.