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Corporate Banking and Its Products

Products under Corporate Banking

Project Loan: Commercial banks offer project loan to export-oriented customers for setting up new projects as well as for expansion of an existing projects. To finance costs of building, machinery, equipments, vehicles and other fixed expenses may be the objective of project Loan. Project Loan is provided to the customers in the form of hire purchase, lease finance, loan general etc.

Working Capital Finance: Business enterprises engaged in manufacturing, trading service business are eligible to avail working capital loan to meet day-to-day expenses for processing of manufacturing and selling product and services. Working capital products include both fund and non-fund based products. Fund-based working capital products include secured over draft, cash credit, packing credit, short-term loans payable on demand bank guarantees. Non-fund based products include bank guarantee; performance guarantees and bid bonds are also supporting the business of our customers.

Lease Financing: Lease financing became a thrust sector for individual and small enterprise besides medium and large enterprises. Commercial bank has been providing lease finance facility to its customer for acquisition of manufacturing and service equipments for all major industrial sectors.

Syndication Finance: commercial banks have been financing large-scale projects under syndication arrangement to raise and meet huge credit need of a company. This arrangement allows the banks to share expertise among them and diversify its credit risks. Syndicated loan as loans extended by multiple banks where the overall credit involved exceeds an individual lender’s legal lending or other limits. It is made available by a group of financial institutions in pre-defined proportions under the same credit facility following common loan documentation formalities.

Trade Finance

  • Letter of Credit: Business Enterprises can avail Non-funded facility for import and procurement of raw materials, machinery, equipment, merchandise item.
  • Loan against Imported Merchandize: Business Enterprises engaged in import merchandise can avail working capital for retirement of import documents.
  • Loan against Trust Receipt: Business Enterprises engaged in import of merchandise can avail working capital for retirement of import documents.