Loans and Advances
Term loans Term loans are loans that are availed for defined purposes, to be repaid within a given period in a pre-determined repayment patterns. The loans are to be repaid on the basis of monthly, bi-monthly, quarterly, semi-annually and annual installments, in one lump sum upon maturity or other agreed amortization patterns, depending on the nature of the business and its cash flow.
Merchandise Loan Facility is a one time or renewable credit facility that may be granted against pledge of merchandise stock at a margin of advance, depending on the nature, stability & marketability of the merchandise items.
► Merchandise –in Transit Facility: is a one term or renewable credit facility which may be converted to merchandise loan shortly after clearing the goods. For the purpose of this loan, the Bank selects its preferred transistor with whom it makes undertakings to deliver the goods to the Bank’s preferred store.
► Pre-Shipment Finances: are short-term, one time or revolving facilities that may be granted upon presentation of valid sales contract (loans against sales contract) and irrevocable export letters of credit (advances against irrevocable L/Cs) as a bridge finance to address seasonal financial needs of exporters.
► Post Shipment Credit: is a facility advanced to exporters to bridge their temporary working capital requirement while the goods are in-transit for shipment upon presentation of all relevant and valid export documents, except “Bill of Lading”.
Overdraft facilities, Overdrafts: These are renewable credit facilities by which customers are allowed to draw beyond the deposits they maintain in their current accounts. Overdrafts are extended to meet working capital needs of borrowers based on justified volume of operation and the collateral/s proposed. Overdraft facilities are callable whenever the client breaches one or more of the covenants, upon 30 days prior notification.
Currency Exchange Rates Date: 22/05/2013
AIB launched ATM & POS Services
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