The Cooperative Bank of Oromia is set to launch interest free banking services, Addis Fortune reported.

The services contain Wadiya accounts for cash, Wadiya current accounts for cheques, Muharaba investment savings account and Haji Umra account to save for the pilgrimage to Mecca, Saudi Arabia.

Its financing services include Muharaba financing, where the bank delivers any good after receiving the full money and specification of the good from its customer; Ejira financing, in which the customer renders payment gradually after the bank delivers the good; Estisna financing for construction, as well as Selam financing, where the bank gives agricultural inputs to take the equivalent amount after harvest.

Musharaka investment is the other area of interest free banking service and it is ventured between the bank and the customer.

According to Alemayehu Negera, President of the bank, interest free banking service could be desired by non-Muslims too.

Commercial Bank of Ethiopia (CBE), Awash International Bank, Wegagen International Bank, United Bank, Abay Bank and Oromia International Bank are banks offering interest free banking services in Ethiopia.

Currently, Cooperative Bank of Oromia has 130 branches as well as 1.4 billion Birr capital, 6.73 billion Birr deposits and assets worth 9.76 billion Birr.

Source: Addis Fortune