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Loans with low processing charges from BoB
Loan against Banks own Deposits
The guidelines/procedure to be followed while sanctioning the loan/overdraft against Bank’s own deposit is as under
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Key Benefits
(a) Loan should be granted to the holder of the FDR/SDR, but no facility be granted if the FDR/SDR is in the name of minor.(b) Loan may be granted in the name of firm/company if the FDR/SDR is in the name of proprietor/partner/director.(c) Margin to be kept at 10% of the deposit. Managing Director may reduce margin from 10% to 5%. However an undertaking should be obtained that if interest is not serviced within 3 months, the bank will prepay and adjust proceeds of the FDR in the accounts.(d) No facility to be granted against other branch FDR/SDR. However, branch may grant LABOD against deposit at other foreign branches/ subsidiaries of our parent bank subject to noting the lien in our favour as well as subject to permission/law of freely repatriation of money in the respective country.(e) Interest on the loan/overdraft against own deposit may be charged as under:-(i) Loan/overdraft in Botswana Pula – Minimum 2% over interest paid against deposit in Botswana Pula FDR/SDR. If loan is granted against deposits at other foreign branches/subsidiaries of parent bank interest rate will be prime rate. Margin for Loan /overdraft against third party deposits shall not be less than 10% and rate of interest on such advance shall not be less than prime rate irrespective of rate of interest quoted for the FDRs.
