Funded
Facilities for Large Corporate Organizations
1.
Overdraft
Facility
An Overdraft is a facility which is disbursed to
meet the borrower’s working capital requirements. The Bank approves a credit
limit up to which the borrower may draw as needed. This facility is a revolving
facility and there is no restriction on the borrower to deposit and/or withdraw
“within the bank approved specified limit or available drawing powers,
whichever is lower”. This facility is generally approved for a period of one
year and secured by the hypothecation/pledge of current assets,
hypothecation/assignment of receivables, personal/corporate guarantees and
registered mortgages on immovable properties.
2.
Term
Loan
To meet fixed or one-time credit requirements of the
borrower, the Bank commits a Term Loan. The entire amount of loan is withdrawn
at loan inception, with the repayment calculated over a realistic period of
time based upon the income generating capacity of the borrower. This is not a
revolving account and payments made are not permitted to be withdrawn again,
resulting in progressing reduction of the Term Loan balance. Term Loans are
secured by hypothecation/pledge of current assets, hypothecation/assignment of
receivables, personal/corporate guarantees and registered mortgages on immovable
properties.
3.
Contract
Financing
Contract Financing is a credit facility that allows
a client to maintain liquidity while waiting for an anticipated and reasonably
expected inflow of cash from payment of a contract. Contract Financing can be
secured against a confirmed assignment of receivables from contracts awarded to
the Applicant / Borrower from a reputable organization or Company. Contract
financing is primarily extended to construction contractors.
4.
Bill
Discounting
Bill Discounting is a short term financing facility
that allows a client to obtain financing and receive immediate funds from the
Bank by discounting a bill of exchange under a letter of credit. Upon maturity,
the bank sends the bill to the bank/institution, on which the said
bill/check/instrument is drawn and receives the said payment. The Bank charges
a fee or commission for providing this facility to its customers. The amount
released to the customer is discounted from the face value of the document to
allow the Bank a margin of collateral safety and to provide the commission
retained by the bank.
5.
Post
Import Finance (PIF)
AIB provides PIF (Post Import Finance) for Letter of
Credit clients. Upon payment under an Import LC, AIB provides PIF to allow
importers time to sell their merchandise. The facility has agreed terms of
repayment and collateral requirements.
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