Term Loan Facilities
Term Loan is a loan granted for working capital and/or project finance to be repaid within a specific period of time with interest. The loan is repaid in a lump sum on maturity, or in periodic installments depending on the nature of the business and its cash flow.
a. Short-Term Working Capital Loan
Short-Term Working Capital Loan is a loan extended by the Bank to finance the working capital needs and/or to address other short-term financial constraints of the borrower’s business with repayment or maturity period of one year or less.
b. Medium Term Working Capital Loan
A Medium-term Working Capital Loan is a loan which has a maturity period longer than one year but not exceeding a maximum period of five years, with periodic installments. It is advanced to augment working capital need or to permit the acquisition of fixed assets;
c. Long Term Project Financing Loan
A Long-Term Project Financing Loan, on the other hand, is a loan which has a maturity period longer than five years but not exceeding a maximum period of 20 years for commercial or business loans, with periodic installments. It is mainly project financing in nature.
d. Motor Vehicle Purchase Loan
A Motor Vehicle Loan is a loan extended in the form of a term loan for the purchase of motor vehicles, and is aimed at alleviating the financial constraints of the transport sector as well as of other business sectors.
e. Construction Machinery Purchase Loan
A Construction Machinery Loan is a loan extended in the form of a term loan for the purchase of construction machinery such as trucks, dozers, graders, loaders, excavators, scrapers, rollers, asphalt pavers, crushers, concrete batching plants, concrete pavers, cranes, drilling rigs, wagon drills, and chip spreaders.
f. Building Construction Loans
Building construction loan is a loan to be granted for the purpose of constructing or renovation or purchasing commercial building. The loan shall cover partial cost of the construction or purchasing cost.
g. Construction Working Capital/Bridge Loans
Construction working capital loan is a loan to be provided to licensed contractors to meet working capital shortage (bridging dried cash flow /i.e. to mobilize materials required to construct complex buildings, roads, dams…etc.) based on contracts conclude with employers.