A term loan is a commercial credit that has fixed repayment schedules, Interest rate and must be fully repaid at expiry date. The maximum tenure for this facility is 6 years.AGRICULTURE LOANS
Agricultural loans are designed to finance business activities in the agricultural production; processing and marketing value chain; animal production (diary, poultry and piggery projects); fishing and fish farming; bee keeping; food processing i.e. grain mills, oil mills and hullers. The loan period and repayment plan are dependent on the nature and season of the agricultural activity to be financed.
LOANS AGAINST FIXED DEPOSIT RECEIPTS
These are loans against cash held in the Bank or near cash security. For purposes of this policy, near cash security constitutes government security or unconditional and irrevocable guarantee by first class bank or financial institution
The Assets Based Finance facility shall be for the purpose of financing purchase of movable asset, using the same assets as collateral in addition to other suitable collateral that may be provided to satisfy the requirement of this policy. The asset to be financed shall be Light Duty utility Vehicles (LDV), Passenger Buses, Heavy Duty Vehicles (HDV), Trailers/Tankers, Earth Moving Equipment and Machinery and Equipment. The Bank shall finance both brand new and new assets in accordance with the guidelines tabulated in this section. The borrower shall provide equity contribution in the assets to be purchased in the form of cash investment towards the gross purchase price of the assets.SYNDICATIONS AND PARTICIPATIONS
For reasons of mitigating credit risk and/or avoiding breach of single/group borrower’s exposure credit limit, the bank shall consider syndication lending with other banks or financial institutions. The bank will also consider applications from other banks and/or financial institutions for syndicated lending. In either case the bank shall perform its own independent credit risk analysis and review of the syndication terms and the expected return prior to committing to the syndication. In cases where the leader of the syndication is another bank or financial institution, analysis of the lead bank’s capacity to lead the syndication shall be done.