Term Loan

A Term Loan is a loan granted for working capital and/or project finance to be repaid within a specific period with interest. The loan is repaid in a lump sum on maturity, or in periodic installments (monthly, quarterly, semi-annually or annually), depending on the nature of the business and its cash flow.

For any project financing, the borrower shall first commit her/his/its equity contribution to the project.

The Bank extends Short-Term, Medium-Term, and Long-Term Loans.

  • Short-Term Loan is a loan extended to finance the working capital needs and/or to address other short-term financial constraints of the borrower. Short-Term Loan could be granted up to a maximum of two years.
  • A Medium-Term Loan is a loan that has a maturity period longer than two years, not exceeding a maximum period of five years, with periodic installments.
  • A Long-Term Loan, on the other hand, is a loan, which has a maturity period longer than five years with periodic installments.

The applicant for a Medium or a Long-Term Loan must be able to submit a detailed study of the capital investment project or a business plan. Unless specifically stated otherwise, the applicant must contribute at least 30% of the project cost from own financing. The Bank will finance the remaining balance up to a maximum of 70% of the total project cost after ascertaining the 30% equity contribution.