Conditions of granting the business loan
Business loan terms
- Recommended maximum term of loan limit action – 12 months.
- Recommended maximum term of business loan agreement - 36 months.
- Recommended maximum collateral agreement term – not more than General Agreement term.
Annual loan limit review
Annual loan limit review must be prepared in eleventh and twenty-third month after the credit agreement conclusion.
Loan limit confirmation, decrease or increase is the result of required on the review day Credit Commission or Credit Committee. The additional bank agreements are signed and all needed commissions are paid if it’s necessary.
If the decision about decreasing (closing) of the loan limit has made the borrower have to decrease (close) the required loan limit during the twelfth/twenty-fourth month.
If the borrower breaks the liability concerning annual loan limit review and unavailability of Credit Decision (Credit Commission or Credit Committee) he has to close the current loan limit during next one months (new loan limit isn’t fixed).
If the borrower executes the breaking liability Credit Commission or Credit Committee fixes a new loan limit. The additional bank agreements are signed and all needed commissions are paid if it’s necessary.
Maximum loan limits
Maximum loan limit is fixed in 35% from the amount of annual sales (if a client is VAT payer - without VAT, other client – total sales)
Loan currency – dollar USD.
Basic interest rate
Basic interest rates which are the base of price formation on product are established by Assets and Liabilities Committee and can be revised if there is a need.
Type of interest rate
Fixed for the whole validity term of loan limit. When limit review is provided the interest rate can be changed by the required Credit Committee decision.
Floated – with quarterly review (after the software can support only).
Form of loan financing
Loan is financing by parts of the fixed loan amount during the loan agreement action.
Tranches are distributed in cash by transferring the loan funds from the borrowing account to the current account of the borrower of the Bank. For currency loans – if necessary the converting of loan funds is used on inter bank currency market.
1) Commissions on loan funds transferring is stated according to the loan amount. The commission is paid in full amount per year: before the day of loan funds transferring of the first tranche to the current account of the borrower / in day of annual loan limit review.
Commission is paid in national currency. The commission amount is approved by the Tariff Committee of the Bank.
2) Commission on financial loan management in part of changes of loan granting conditions is stated for each time of changes made in appropriate agreements except those which were made at the Bank’s initiative.
Commission is not applied to the anticipated loan repayment and making changes in loan agreements while timely revising the limit of loan granting.
3) On cash and settlement service – in accordance with the tariffs of the Bank.
For inappropriate observance of requirements as for the loan and interests repayment the borrower is paying penalty in amount of double rate valid at the moment of inappropriate observance of requirements during the whole term of inappropriate observance of the requirements.
Penalty is to be paid in full amount in day of installment or out of schedule loan and\or interests’ repayment.
Penalty is paid in national currency at the central Bank rate for a certain date.
- Opening the current account at the moment of obtaining the loan funds and transferring the turnover in necessary amount for three months from the date of signing the loan agreement.
- During the loan term the borrower is to inform the Bank in a written form about the intent of obtaining the loans and also providing the guarantee in favor of the third persons in term of 5 (five) calendar days before the conclusion of appropriate agreement.
- The Borrower is to duly ensure the availability and effectiveness of collateral insurance agreements.
If the borrower is violating every requirements the loan interest rate is might be increased for 2 (two) interest points from the first date of the month following the month when the violation was discovered. The Bank has a right to require the anticipated loan repayment. The interest rate is increased by the Bank unilaterally.
If the Borrower is meeting the violated requirements the loan interest rate decreases to the early fixed level from the first date of a month following the month when the violation was rectified.
Loan granting conditions
- Current account is opened in the Bank by the borrower and by the guarantor if the loan is granted to the person who is the owner or the director of a business which is analyzed.
- The borrower is to provide the package of documents required by the Bank for resolution approval as for the loan granting and conclusion of loan and security agreements.
- Signing the necessary loan and security agreements, commission payments.
Insurance of collateralized property and coming in force by insurance agreement.
Conditions of repayment
- Fully or partly loan payment can be during the credit agreement action.
- Interests are accrued every month on actual loan balance.
- Interests are paid every month.
- Interests and credit indebtedness are repaid from the current account of the borrower in the Bank to the banking accounts.