Corporate Overdrate / Commercial Loans

Posted on: 23 October 2022

Corporate Overdrate / Commercial Loans

These shall be overdrafts and loan facilities to individuals, corporate bodies, enterprises and others on active business.

1.      All loan/overdraft applications shall be properly evaluated by the Credit Department on the basis of the information gathered through Credit investigation.

2.      Duration of loan repayment shall not be more than 24 months. However, long-term Loans may be considered at the discretion of the Board.

3.      Guarantors shall be at least two (2) salaried workers who receive their salaries through the Bank.

4.      Repayments of loans shall be on monthly installment basis or regular cash lodgments, or in some instances at maturity of the loan.

5.      Applicants for commercial loans meant for the purchase of vehicle(s) shall indicate their ability to contribute at least 25% of amount granted as cash lien. In addition, all vehicles financed by the Bank shall be registered in the joint / sole name of the Bank and Comprehensively Insured.

6.      Loan above GH? 15,000.00 shall be properly secured by immovable Properties apart from the provision of cash lien and guarantee.

7.      Immovable properties as security shall be valued by a Valuer and a copy of the Valuation report of not more than three (3) years old shall be lodged with the Bank during the tenure of the loan. In the absence of the required documentation, an affidavit shall be sworn in court by the applicant using the said property as security to the loan.

8.      All immovable properties offered as securities against facilities shall be mortgaged and such mortgages shall be witnessed.

9.      Properties of borrowers in trading shall be covered by Insurance Policies.

10.  Commitment fees charged shall be 6%.

11.  Beneficiaries of credit line/commercial loans shall have their facilities withdrawn by the Bank upon non-performance.

12.  Loan appraised and evaluated by the Credit Department shall be endorsed by the Chief Executive Officer and forwarded to the Loan Committee or the Board where applicable.

13.  Extension of loan duration shall be granted upon detailed evaluation of borrowers’ loans Requests and approval within the loan approval limits.

14.  List of beneficiaries and amount granted as loans in any particular month shall be submitted to the Board for perusal.