Purpose:

Single line of credit for Working capital such as Over Draft, Trust Receipts, BP/BD/LCD, short term demand loans, Letter of credits, Bank Guarantees, and also long term requirements against the security of certain cash margin and / or immoveable property

Eligibility:

All concerns having sales turnover upto AED 100 millions and profit making for last 3 years

Loan amount:

(A) The working capital limit can be extended up to 20% of the projected sales Turnover or actual requirement, whichever is less, subject to following:

(i) In case collateral security is not available

1.   Up to 150% of deposits held with the branch if establishment is less than 3 years old

2.   Up to 200% of deposits with the branch if establishment is > 3 years

(ii) In case security is available.

1.   60% of the value of Mortgage/Assignment

2.   50% of the value of possessory pledge

(B) Other facilities

Limit will be assessed considering the total budget and actual requirement subject to assessment as per existing guidelines

Security:

Deposits with the bank , Assignment / mortgage of the immoveable property, personal guarantee, etc.

Rate of interest*:

Competitive Rate of interest prevailing at the time of sanction

Period:

Working capital finance – renewable annually
Term loans - Up to 7 years