Processing, Approval, Sanction & Disbursement

Approval will take into account the applicant’s character, credit standing, performance on any previous facilities availed, feasibility of the proposed project, repayment capacity and security.

The Bank will check with other financial institutions for existing liabilities of the borrower (including directors if the borrower is a company)

Bank staff will inspect all relevant property and sites

The Borrower and Guarantors must complete all documentation and mortgage formalities prior to disbursement of any funds under the sanctioned facility

Disbursement will be as per the request of the borrower, as far as possible.

As a rule, construction loans will be disbursed in phases, after inspection and assessment of the utilization of the previously disbursed funds.

Interest & Fees

• Interest will accrue on a daily basis, on the daily outstanding cleared balance.
• Accrued interest will be charged (capitalized) to the liability account on a monthly basis, on the last day of the month (last calendar day for loans, last calendar day/next business day for overdrafts).
• The loan/overdraft outstanding balance at any time will be determined including the interest amounts capitalized at the preceding month end.
• Penalty interest

Loans: If any scheduled payment is not paid within 90 days of the due date, penalty interest of additional 5% per annum will be charged on the entire loan outstanding balance.

Overdrafts: If the account is excess overdrawn above the sanctioned limit, penalty interest of additional 5% per annum will be charged on the unauthorized (excess overdrawn) amount.

Charges & Fees : Interest rate, arrangement fee, amendment fee, enhancement fee, commitment fee and prepayment fee will apply as per the Bank’s prevailing Schedule of Charges.

Repayment

For loans, repayment terms will be fixed in consideration of the borrower’s request, repayment capacity, and the Bank’s policies.

For projects that will not generate income for some months, a “grace” period is allowed on the loan repayment, however, monthly payment approximately equivalent to one month’s interest on the outstanding amount will be payable even during this initial period.

For overdraft facilities, the account should always be kept within the approved limit, and cheques should not be issued without adequate balance in the account.