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.
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.
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.