A Term Loan is a loan granted for working capital and/or project finance to be repaid within a specific period of time with interest. The loan is repaid in a lump sum on maturity, or in periodic installments (i.e. monthly, quarterly, semi-annually, or annually), depending on the nature of the business and its cash flow. The Bank extends Short-Term Loan, Medium-Term Loan and Long-Term Loan.
A Letter of Guarantee Facility issued by a bank is a written promise/ irrevocable obligations by the bank to compensate (pay a sum of money) to the beneficiary (local or foreign) in the event that the obligor fails to honor his/her/its obligations in accordance with the terms and conditions of the guarantee/agreement/contract.
A Revolving Export Credit Facility is an advance extended to exporters upon presentation of acceptable export documents, except a bill of lading. The facility should be advanced against valid export documents.
Pre-Shipment Export Credit Facility is a loan extended for purchase of raw materials, processing and converting them into finished goods, warehousing, packing and transporting the goods until the time of shipment.
The Import Letter of Credit facility is a credit product that the CBE extends to applicants engaged in the import business, or other applicants who import for various purposes on payment of a certain percentage of the value of the document while opening a Letter of Credit.
Merchandise refers to a specific product or group of products or goods manufactured or acquired by a trading business for the purpose of sale.
In addition to the General Eligibility Criteria, the customer should fulfil the following requirements:
- The Bank may extend a fresh Overdraft Facility to applicants that do not have an existing Overdraft Facility with other banks. However, the Bank may buy-out the Overdraft Facility with the other bank, provided that the customer has good utilization of it and his/her/its current assets also justify the proper utilization of the Overdraft Facility.
The Bank offers a wide-range of credit products supposed to fit with the existing or future demands of the economy and its customers. CBE extends short, medium and long terms loans and advances to borrowers who are engaged in commercial and non-commercial activities.
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