Funded Facilities

Funded Facilities

Overdraft Facility
An Overdraft is a facility which is disbursed to meet the borrower’s working capital requirements. The Bank approves a credit limit up to which the borrower may draw as needed. This facility is a revolving facility and there is no restriction on the borrower to deposit and/or withdraw “within the bank approved specified limit or available drawing powers, whichever is lower”. This facility is generally approved for a period of one year and secured by the hypothecation/pledge of current assets, hypothecation/assignment of receivables, personal/corporate guarantees and registered mortgages on immovable properties.

Term Loan
To meet fixed or one-time credit requirements of the borrower, the Bank commits a Term Loan. The entire amount of loan is withdrawn at loan inception, with the repayment calculated over a realistic period of time based upon the income generating capacity of the borrower. This is not a revolving account and payments made are not permitted to be withdrawn again, resulting in progressing reduction of the Term Loan balance. Term Loans are secured by hypothecation/pledge of current assets, hypothecation/assignment of receivables, personal/corporate guarantees and registered mortgages on immovable properties.

Contract Financing
Contract Financing is a credit facility that allows a client to maintain liquidity while waiting for an anticipated and reasonably expected inflow of cash from payment of a contract. Contract Financing can be secured against a confirmed assignment of receivables from contracts awarded to the Applicant / Borrower from a reputable organization or Company. Contract financing is primarily extended to construction contractors.

Bill Discounting
Bill Discounting is a short term financing facility that allows a client to obtain financing and receive immediate funds from the Bank by discounting a bill of exchange under a letter of credit. Upon maturity, the bank sends the bill to the bank/institution, on which the said bill/check/instrument is drawn and receives the said payment. The Bank charges a fee or commission for providing this facility to its customers. The amount released to the customer is discounted from the face value of the document to allow the Bank a margin of collateral safety and to provide the commission retained by the bank.

Post Import Finance (PIF)
AIB provides PIF (Post Import Finance) for Letter of Credit clients. Upon payment under an Import LC, AIB provides PIF to allow importers time to sell their merchandise. The facility has agreed terms of repayment and collateral requirements.

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