Overdraft/Demand Loan against Bonds and Treasury Bills
Personal use/Business use other than speculative purpose
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Target Group
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Nature of Facility
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Purpose
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Limit and Margin
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Eligibility
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Rate of Interest
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Processing Fees
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Repayment
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Securities
- Small and Medium Entrepreneurs engaged in trading/manufacturing business activities.
- Demand Loan/overdraft against charge on movable assets.
- Personal use/Business use other than speculative purpose.
- In case of Loan Tenor up to 12 months:
- 20% of face value of Bonds/Treasury Bills (T-Bills) or market price of Bonds/Treasury Bills (T-Bills) whichever is lower.
- In case of Loan Tenor beyond 12 months:
- 30% of face value of Bonds/Treasury Bills (T-Bills) or market price of Bonds/Treasury Bills (T-Bills) whichever is lower.
- Individual operating satisfactory saving/current account with the bank.
- Borrower has invested in Bonds/T-Bills with our bank/other bank.
- Maturity date of Bonds/T-Bills must be longer than the loan period.
- 3.00% above Coupon Rate or 3.00% below PLR with monthly rests whichever is higher.
- Demand Loan: One Time @ 0.25% of sanctioned Amount.
- Overdraft: 0.25% p.a.
- Maximum 36 months or maturity of Bonds/Treasury Bills (T-Bills) whichever is earlier.
- D.P. Note
- Letter of installments.
- Letter of Continuing Security.
- Lien/Pledge on Bonds/Treasury Bills through Treasury Department, Kampala
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