PRODUCT PURPOSE/DESCRIPTION
• 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
PRODUCT FEATURES
| 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. |
BENEFITS
- Quick processing of facilities requests