Contract and Trade Financing Loan
These are loans extended to FIC borrowers for purposes of contract and trade financing purposes. FIC members who get contracts for supplies and service deliveries and are seeking funds to finance the contract(s).
- Must have a good repayment history, of good character and integrity.
- Authentic signed contract of offer.
- Business/Company owned and controlled by the borrower(s).
- In case of partnerships, all partners must give consent and powers of attorney for the member to borrow on their behalf and use business assets of the company for collateral.
- The business/company should be legally acceptable with evidence of ownership such as:
- Operating license/ trade license/tenant’s agreement
- Filed returns
- Any other evidence of ownership of the business;
- Certified/ registered company resolution for contract/trade financing requests. 10)The business should be viable and profit-making with evidence; and should have
operated for at least 2 years.
Terms and Conditions
|Maximum Loan amount
|70% of the contract amount or maximum amount approved by the Board from time to time, whichever is lower.
|Maximum Loan period
|12 months or Contract specified period whichever is lower.
|According to the nature of the contract but in any case
not exceeding one month
|Lump sum/Monthly/ quarterly/ semi-annually
|FIC lending rate plus 1%
|Interest calculation method
|Loan processing fee
|2% of the approved loan amount
|1% of the amount in arrears 30 days and above accrued monthly
|Insurance fees according to insurance policy rates. Applicable legal fees.
Any other costs applicable to the contract.
|Savings/share capital/ business/ tangible collateral