What is Micro Credit:
Micro credit is considered any financing given to a profitable activity that generates business income or invests in this business and have a stated annual turnover level of not more than ALL 28,000,000.
Any profitable activity that generates business income or invests in this business. The maximum exposure limit for Micro customers should not exceed the amount of ALL 14,000,000 or the foreign currency equivalent. Individual clients who generate their income from business are classified in this financing category if they apply for Consumer Loans.
Micro Segment Financing:
Loans for circulating capital. The loan for circulating capital must finance inventory purchases, supplier payments, state tax payments, as well as other short-term payments to third parties. Overdraft/ Line. This lending facility entitles the customer to have a negative balance in his current account. The main conditions are as follows:
- The maximum maturity term for this loan is 12 months
- Full use of the limit within the prescribed period;
- No return with fixed plan;
- Interest is calculated daily on the negative outstanding of the account and is paid once every three calendar months.
Short-term/Medium-term Loans Unlike the first loan, settlement of this loan is based on a defined settlement plan. Investment and financing loans in fixed assets. This loan will be used by the client to finance the purchase of business premises, investments in existing business premises, investments in machinery and equipment as well as the purchase of trademarks or patents, purchase financial participation in other companies or the settlement of liabilities to third parties for this purpose.
Financing for Individuals with Micro Business income
For individuals who have a source of income from Microfinance Businesses are classified as: Investment loans. This loan is received when the individual client with income from the micro business invests to own shares of another company, or other investments or settlement of liabilities to third parties for this purpose. Financing a shareholding in another company will not be permitted unless the individual receiving the financing is directly involved in the management of the company from which he/she is purchasing shares. Purchasing/ housing Loans. In this case the Bank finances the total or partial value of the purchase, construction of residential real estate (house, apartment or land where a residential building will be built), ”or the settlement of liabilities to third parties for this purpose. Consumer Loans. Are loans intended for personal, family or household use that include financing for; Mortgage Loans Personal use loans, which unlike consumer loans, regardless of purpose, are mortgaged to finance the following: Overdraft. It will be used by Micro Individuals for Credit Card financing In case the micro individual is also employed at a business entity with which the Bank has entered into an agreement, the OVD Page/overdraft Credit Card may be used under the same terms and conditions as the Payee Individuals who receive the salary at the bank.