These may be residential or commercial buildings owned by the borrower or a third party and currently in use or under construction. However, building under construction should at least be at habitable stage. The Bank’s engineer shall estimate the value of buildings presented as collateral. And estimation fee shall be borne by the borrower.
New motor vehicles may be accepted as collateral. In this case, the invoice value of the new vehicles shall be considered. Used motor Vehicles may be accepted only as additional collateral together with building. However, for new loan the share of used motor vehicles shall not exceed 25%of the collateral value. Moreover, as a matter of policy, the age of used motor vehicles shall not exceed five years.
New machinery and equipment may be accepted as collateral. The invoice value of the machinery and equipment shall be considered as acceptable collateral. Used machinery and equipment may be accepted only as additional collateral together with building. However, for new loans, the share of used machinery and equipment shall not exceed 25% of the collateral value. Moreover, the age of used machinery and equipment shall not exceed five years.
The bank may accept trade receivable (which is backed by a firm undertaking from the debtors) as collateral for loans with a maturity term of three month or less. In such cases, the maturity structure of the receivable shall be less than the maturity term of the loan by at least one month.
Collateral in the form a deposit shall be backed by a letter of assignment on the deposit from the depositor(s)
The margin on share certificates as collateral shall not exceeds 70% of the share par value or market value whichever is less.
Guarantees (Bank guarantee and Personal Guarantee
Bunna International Bank S.C will charge competitive interest rate on loans and advances ranging from 8.5% to 14% depending on the type of credit facility, maturity of the facility and associated risk.