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Loan & Advances

 

Lion International bank (LIB) renders a monetary loan to its esteemed customers for a specific purpose,such as for set up or enhancing business.It will have a predetermined duration, and the loan will have an interest rate that is either fixed or adjustable.

1.1 Overdraft Facility

An Overdraft is a form of credit facility by which a customer may be allowed to draw beyond the deposits of its current accounts for the sole purpose of the day-to-day operational needs of a viable and ongoing business.

1.2 Overdrawal

An Overdrawal is a temporary facility that grants a customer the right to withdraw a specified amount of fund over and above the Overdraft limit in order to meet unexpected seasonal cash shortage.

1.3 Merchandise Loan Facility

A Merchandise Loan is a short-term credit facility provided by the Bank against which the merchandise or documentary evidence (Railway Receipt, Airway Bills and Warehouse Receipt) is held as a pledge or collateral for the loan.

1.4 Import Letter of Credit Facility

The import letter of credit facility is a credit product that Lion International Bank extends to applicants engaged in the import business, or other applicants who import for various purposes on payment of a certain percentage of the value of the document while opening a Letter of Credit.

1.5 Pre-Shipment Export Credit Facility

Pre-Shipment Export Credit Facility is a loan extended for purchase of raw materials, processing and converting them into finished goods, warehousing, packing and transporting the goods until the time of shipment.

1.6 Revolving Export Credit Facility

A Revolving Export Credit Facility is an advance extended to exporters upon presentation of acceptable export documents, except a bill of lading. The facility should be advanced against valid export documents.

1.7 Letter of Guarantee Facility
 
1.The Bank provides guarantee services to both local and foreign customers.
1.The Bank avails different types of letters of guarantees; such as bid bond, performance bond, advance payment guarantee, suppliers’ credit guarantee, retention guarantee, steamers’ guarantees/letters of indemnity for missing documents, and customs duty guarantee.

1.8 Term Loan

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

2. Short-Term Loan is a loan extended by the Bank to finance the working capital needs and/or to address other short-term financial constraints of the borrower’s business. Short- Term Loan could be granted up to a maximum of one year.

3. A Medium-Term Loan is a loan which has a maturity period longer than one year, not exceeding a maximum period of five years, with periodic installments.

4. A Long-Term Loan, on the other hand, is a loan which has a maturity period longer than five years, with periodic installments.

5. Medium- and Long-Term Loans are intended for the financing of the acquisition and/or leasing of fixed business assets (buildings, machinery, equipment, public transport vehicles, trucks and trailers, etc.), the establishment of a new project and the expansion of an existing business—all of which must be justified by a project feasibility study and/or a business plan.

6. 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.

7. The applicant must contribute at least 30% of the project cost but not from debt financing.

1.9 Motor Vehicle Loan

A Motor Vehicle Loan is a term loan granted for the purchase of motor vehicles for borrowers in the transport sector as well as other business sectors.

1.10 Construction Machinery Loan

A Construction Machinery Loan is a loan extended in the form of term loan for the purchase of construction machinery such as dump truck, dozers, graders, loaders, excavators, scrapers, rollers, asphalt pavers, crushers, concrete batching plants, concrete pavers, cranes, drilling rigs, wagon drills, chip spreaders, and concrete mixer mounted on trucks, etc.

1.11 Partial Financing

Partial Financing is a financing scheme whereby the Bank covers a portion of the auction price of foreclosed and acquired properties presented for sale by the Bank.

1.12 Syndicate Loan

A Syndicate Loan is a form of term loan that is provided by and shared between the Lion International Bank and other financers due to the volume of the fund and the magnitude of the risk involved. The term of the loan is often medium to long in nature.

1.13 Agricultural Term Loan

An Agricultural Term Loan is a loan granted to alleviate the financial constraints of the agricultural sector in the form of an agricultural input loan for the purchase of agricultural machinery, working capital finance and investment finance to large and medium commercial farms;

1.14 Loan Buyout

Loan Buyout is a type of arrangement wherein the bank buys loans from other banks. The Bank involves in this activity if it believes that buying of the loan is beneficial.

Foreign Exchange Rate

 Code
USD
GBP
EURO
Buying
22.7247
28.4013
24.5063
Selling
23.1792
28.9693
24.9964