Our Loans

A term loan is a monetary loan that is repaid in regular payments over a set period of time. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.

Overdraft Facilities

This is short-term financing not exceeding 12 months intended to support working capital. It finances short-term finance needs occurring during the intervals between receipt of proceeds and the payment period in the context of the asset conversion cycle.

• Connected to the CDB Business Account
• The facility can be renewed
• Strictly not for personal consumption
• Not for financing fixed assets e.g. buildings, machinery etc.
• Maximum lending to a single borrower will be as per prevailing Central Bank Prudential Guidelines
• Price for unauthorized overdraft is +5% on the O/D interest on the exceeded limit
• Interest is calculated daily based on the maximum balance used per day
• Interest payment is per month, debited from the business account
• Duration is 12 months, subject to annual review and/or renewal in case of need
• Interest rates for corporate lending are competitive and negotiable

Benefits

• To support working capital requirements
• Available anytime when applied for but subject to viability of the business and fulfillment of the collateral documentation
• Interest is charged only on the overdrawn balances, hence it is cost-effective to the borrower
• Cultivates a sense of closer cash management for the customer hence bringing efficiency
• Gives assurance to the customer of business continuation even during cash deficit cycles

Eligibility – General Requirements

• Application letter
• Cash flow projections
• Business plan
• Memorandum and Articles of Association
• Certificate of registration/Certificate of incorporation
• Audited financial statements for the last three years, and management account up to date of application
• Business license, TIN certificate
• Board Resolution to Borrow
• Recently filed returns with Register of Companies (for companies)
• Tax Clearance Certificate
• Proposed security for the facility
• Valuation report of the proposed security
• Business must prove to be financially viable with a sound business turnover

Additional Documents for Public Corporations and Government Agencies:

• Must provide Government assent to engage in the borrowing
• Must provide Government Guarantee

Bank Guarantees

Bank Guarantees (BGs) are undertakings issued by banks on behalf of their customers to cover losses that may occur. BGs are increasingly used in contractual agreements for large projects/performance contracts with government/large companies. These include the following:

• Bid bond (tender) guarantee
• Performance guarantee
• Advance payment guarantee
• Retention money / earnest money deposit guarantee
• Financial guarantee

The Letter of Guarantee will be issued on behalf of a customer after the credit vetting and approval process as any other credit facility. The appraisal will be aimed at assessing the borrower's ability to complete the project/contract for which the BG is being issued.