TERM
LOANS
Loan facilities provided to the borrowers for over a
period of one year & above and are repayable in scheduled instalments along
with the interest, as mutually agreed upon will be classified as Term loans.
Term Loans are extended for Procurement of Capital
goods like Equipment, Machinery, Furniture, Show Room, Factory Premises,
Vehicles etc.
ELIGIBILITY:
·
Any Commercially viable and lawfully
permitted activity either Industrial or Non Industrial is eligible for Term
Finance.
·
Entrepreneur having valid statutory/business
license, experience/qualification in the line of activity is eligible.
·
Need based finance will be considered by
the Bank on individual assessment of the proposals. The assessment will be made
on Personal investigation, Confidential reports from Market, Other Banks,
Chamber of Commerce or any other controlling agency of the business concerned
e.g,
-
The balance sheet,
-
Trading account,
-
Profit and loss account;
-
Memorandum and articles of association if any, and other relevant documents;
·
The age/type/average balances/present
balance/nature of operations during the last six months, of the account with
Maiwand Bank etc.
FEATURES:
·
Generally prescribed Margin is 25%.
However, it is decided on case to case basis.
·
Along with prescribed Application, the
applicant to submit Financial Statements like Project Report along with the
Feasibility Report, Balance Sheet, Trading A/c, PL Account etc., - audited for
past 2 years & projections for next two years.
·
Rate of Interest may range between 15%
to 25% and will be assessed on case to case basis.
·
Interest will be calculated on daily
product basis and will be applied at the end of every month.
·
Moratorium Period is allowed on the basis
of Fund Flows of the Project.
·
Repayment in Monthly/Quarterly/Half
Yearly Instalments in not exceeding 3 years.
·
Repayment Schedule will be fixed on the
basis of Cash Flows, Repayment Capacity & Debt Service Coverage Ratio.
FACILITIES
WILL BE SECURED BY WAY OF;
(i) hypothecation / pledge of stocks / goods /
machinery / equipment etc.
or
(ii) Mortgage / Creation of charge on suitable
Immovable Properties.
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