COMMERCIAL LENDING
I.
Trade Finance (Working Capital Finance)
Overdraft:
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This facility
is offered in the form of fully secured /
partially secured / on clean basis for to
business concerns for their working capital
requirement |
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Revolving facility available |
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Operations similar to Current Account |
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Interest application on daily product
basis |
Rate of interest*:
For advances
against deposit-1% over TDR rate (Refer Advances against banks own
deposits under Retails lending)
For others-generally 2.50% to 3% over 3 months IBLR subject to min. 8.50% to 9.00%
Trust Receipt:
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Loans offered to any medium traders,
corporate for financing procurement of
goods/material etc |
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Facility is allowed generally against bills
drawn under Sight Letter of Credit Bills |
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Maximum Tenor is generally up to 90 days |
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Facility given in AED |
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Loan amount depending on Sanction
Limit / Individual Transaction |
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Floating Rate of Interest linked to
IBLR (Inter Bank Lending Rate)
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Bill Finance:
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Purchase of
bills drawn under LC / outside LC |
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Discounting of
Usance Bills |
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Purchase / Discounting of Local
Cheques |
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Rate of Interest : Fixed as well as
Floating Rate of interest |
Demand Loan:
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For any other
general corporate purpose of short term nature
and other working capital requirement of a
business concern |
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No minimum
tenor, but maximum tenor is 36 months |
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Rate of Interest : Depends on the
security offered but generally 2.5% to 3% over 3
months with minimum 8.50% IBLR 8.5% to 9%
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