General Eligibility Criteria

 For Business and Consumer Loans

 Applicant need to open acct.
 Shall have no active record of NPL
 Able to contribute the required equity contribution not from debt financing
 Must not have active record of mal-operation of checking acct.
 Has to present all info.
 Has to fulfill the specific eligibility criteria

 For Business Loans

 Should present renewed trade license
 Applicant with spouses or shareholders own 10% with spouses .if any must present TIN no.
 Tax clearance certificate as per requirement’s
 Have to submit financial statement.
 Share, PLC, sole proprietorship or partnership whose credit >5 mill. should submit
audited financial statement.
 Share, PLC, sole proprietorship or partnership whose credit <5 mill. Present provisional
financial statement or customer financial assessment report(CFAR);

Credit products
 Term Loan
Be repaid within a specific period of time with interest.

 Short term loan

 Maturity period<1 year

 Medium and Long-Term Loans

 Medium term: 1year<maturity >5 years.
 Long Term: 5 year < maturity >15 years.
 Both are intended for the partial financing of
1. Acquisition or Leasing of fixed business assets.
2. Establishment of new project expansion of existing project.
3. Working capital.
 Repaid as per the schedule drawn.
 Max. Grace period of 2 and 3 years respectively.
 Charged a higher interest rate.

 Eligibility Criteria
 Able to submit project feasibility study/Business plan. Plan shall at least indicate major point
as per business plan module Form.
  In addition to collateral, applicant offer entire asset of project as collateral. If source of
repayment is from project itself.

 Special Term Loan

 Motor Vehicle (Business) and Construction machinery Loan
 Eligibility Criteria
 Only new brand
 Loan could also extend to other business sector.
 Make equity contribution at least 30% of the cost.
 If equity contribution is more than 40% loan may extend without requirement of
additional collateral.

 Co-financing Loan
 Provided by and shared between OB and other bank.is to share risk and reduce liquidity
problems.
 Involve :
 Lead Bank: propose loan and invite other bank.
 Agent Bank: appointed the syndicate participant bank.
 Joint leading Bank: group of bank that form the lead management.
 Participant bank: invited by lead bank.
 Co-financing agreement: agreement signed by the bank.

 Agricultural Input Loan

 Granted to alleviate the financial constraints of the agricultural sector.
 Eligibility Criteria
 Smallholding agri. Applicant has to organize into association and acquire legal
personality.
 Establish accounting and farm record system.
 Employ manager and accountant.
 Present minutes of resolution passed by ¾ of member.
 Present update financial statement.

 Real Estate Development Loan

 Eligibility Criteria
 Borrowers building held as collateral and registered by govt.
 Equity contribution not less than 40% of the project cost.
 Should be in any major town.
 Content of project feasibility /business plan required.

 Consulting Firm Financing Loan

 Eligibility Criteria
 Valid professional license
 Up to date financial statement.
  Contract justifying the existence of the business at hand

 Loan for Micro-Financing Institutions

 Repayable with in a specific period of time with negotiable interest rate.
 Eligibility Criteria
 Should have high quality of loan portfolio.
 Should legally registered with NBE and meet NBE policies and directives
regarding :
o Reserve requirement
o Liquidity requirement
o Capital adequacy requirement
o Minimum paid up capital requirement

 Idea financing loan

 Eligibility Criteria
 Present an intellectual property right certificate
 Present valid investment or business license
 Submit feasibility study

 Loan for small-scale enterprise

 Eligibility Criteria
 Borrower must have adequate mgmt. experience employ proper bookkeeping and
submit business plan.
 Obtain credit-guarantee scheme from concerned organ.

 Overdraft Credit (O/D)

 Eligibility
 Considered for the ff business streams:
o Manufacturing
o Trading
o Services
 Business must be in operation
 Must submit a renewal request one month prior to expiry date
 Outstanding balance of regular O/D be with in approved limit
 Bank may buyout the OD with other bank
 Must present audited financial statement for OD request equal or greater than 5
mil.

 Merchandise Credit
 The max. Maturity period of loan against railway and airway is 90 days.
 Provided against the merchandise evidence (railway Receipts and airway bills and warehouse
receipt) is held as collateral.
 To relieve the customer from cash flow problem.
 Specific Eligibility
o granted to customer who proved highly credit-worthy r/n
o granted for customer with credit risk grade AAA
o Goods having short shelf life, perishable goods and slow moving items
not accepted as collateral.

 Import Letter Credit

 Extends to applicant engaged in the import business.
 Eligibility Criteria
o import goods eligible for import
o import trade licenses or investment license

 Advance on Import Bills

 Designed to accommodate the non-withdrawal of import document by importer.
 Granted for customers who cannot be able to clear the L/C doc. due to temporary financial
constraints.

 Import Letter of Credit Settlement Loan

 Extended to applicant by converting outstanding import letter value to short term loan and
releasing the import doc.
 Given for a maximum period of six month.
 Eligibility
o Customer shall be with lowest credit risk
o Customer shall be existing

 Bank Letter of Guarantee (L/G)

 Written promise by the bank to compensate to the beneficiary in the event that the obligor fails
to honor its obligation.
Bid/Tender Bond Guarantee
o Issued by the bank in favor of beneficiary upon the request of the bidder.
Performance Bond Guarantee
o Bank issued in favor of a bid organizer at the request of the bid winner to meet
any claim to be mad by the beneficiary ,in case the bid winner fails to deliver the
goods
o Ensures the bidder will duly perform the contract on the basis of the terms and
condition agreed by the tender organizer.
Advance Payment Guarantee
o issued by the bank in favor of a buyer who makes the advance, upon the
request of the seller or the contractor who received the advance, the bank to
repay the sum.in a case the seller or the contractor fails to honor the contract
terms and the seller or the contractor does not return the advance.
 o Ensure that the seller or contractor will return the advance payment made by
the beneficiary.
Retention Guarantee
o Issued in favor of party accepting to release the retention money upon the
request of a seller or contractor, to provide security to a beneficiary.
o Arise when the seller or contractor wishes to collect any retention held on a
contract by presenting a bank guarantee to the party accepting the release of
the retention.
 Eligibility
o Permit from NBE
o Letter of authorization from the applicant
o Applicant shall submit all relevant contractual agreements made
b/n beneficiary and the guarantee applicant when deemed
necessary
o Financial statements and other relevant doc.
o