• This product will decentralize the processing and approval of cash covered facilities to have the same done at the branch.
• A limit of up to SSP 15M will be delegated to the Head of Personal Banking who will further delegate the limit to Branch Managers
|Loan amount||• The borrower’s total exposure should not exceed SSP 15m (or equivalent in foreign currency)|
|Facility pricing||• Interest rate – Minimum margin of up to 10% above the fixed deposit rate
• Arrangement fees – 2%
|Security||• Same currency – 100% of funds held under lien or cash margin account
• Different currency – 110% of funds held under lien or cash margin account
|Maximum tenor||• As per the Bank Credit Risk Policy, However, the facility tenor should not exceed the fixed deposit maturity period|
|Method of Repayment||Amortized over the tenor of the loan. Loan Repayment to include loan principal plus Interest amount.|
|Documentation||• The facility will be available to existing bank customers who have held transactional accounts for a period of at least 3 months
• Customer to provide a signed application letter
• Standard KYC documents
• Letter of lien and set off. 3rd party letter of lien and set-off if the security is not in the borrower’s name. (Not applicable for cash margin)
• Fixed deposit to be liquidated and used to settle any loan arrears beyond 30 days.
• Margin of 10% to be maintained to cover variation and arrears at all times when facility is in existence.
• Fixed deposit principal to be rolled automatically upon maturity and mapped to mature into a take on account.
• Interest on funds held under lien to be credited to the client’s current/saving account upon maturity for amortizing facilities.
• Clients to be allowed to access headroom available against security held
• This product will also cover for administrative extensions (up to 90 days) and for renewals of cash covered facilities that meet the above parameters.
- Quick processing of facilities requests