Overdraft Facilities

Overdraft facilities are provided to allow withdrawals from a current account up to a pre-agreed limit above the credit balance available in the account. The customer can withdraw money at any time within the agreed limit by issuing cheques. Interest is charged on a daily basis only on the amount used in excess of the customer's credit balance.

Lending Facilities

Loans are available in a variety of forms on both a secured and unsecured basis and include the following types:

Revolving loans - provided at a fixed maximum limit, which is reduced by the amount of any drawings and reinstated each time the loans drawn are repaid, and available for a fixed period of time (usually one, two or three years). Interest is calculated based on an agreed fixed or floating rate on the amount drawn and is accrued over the loan period (usually six months). A commitment fee is generally charged on the unutilised portion of the total facility on a daily basis, and calculated at an agreed rate and paid quarterly. The principal may at the borrower's option be repayable in whole or in part at the end of each interest period.

Term loans - provided for a fixed period of time (usually one, two or three years) and amount. Interest is calculated based on an agreed fixed or floating rate on the amount drawn and is accrued over the period of the loan, and usually paid at three or six monthly intervals. The principal may be repayable in a lump sum at the end of the loan period or by instalments over the loan period.

Syndicated loans - the Bank participates on a selective basis in syndicated (usually large) loans, which are either on a revolving loan or term loan basis. Such loans are generally arranged by a Lead Managing bank on behalf of a single borrower and include a number of bank participants. The maturity of the facility (usually three or five years) and participation levels are fixed at the outset.

Standby Letter of Credit and Bank Guarantee

Standby letters of credit and bank guarantees can be issued by the Bank on behalf of our customers to third party beneficiaries, undertaking that in the event that the customer is unable to perform its obligations as stipulated in the contract, the Bank will ensure that the obligation is fulfilled. In return for this undertaking the Bank is paid a guarantee or commission fee (usually payable in advance), calculated at an agreed rate on the amount of the guarantee or standby letter of credit and the agreed period of time for which the undertaking remains valid.