• An overdraft is a form of short term credit facility by which a customer may be allowed to draw beyond his/her/its current account up to a prescribed limit. The facility is usually used to bridge short-term working capital constraints arising in business between receipt of funds and disbursement of funds.

Temporary Overdraft 

  • Temporary overdraft facility is an overdraft account that allows for a deserving customer to draw a specified amount of fund over and above the overdraft limit or current account in order to meet unexpected seasonal cash shortage.


  • An overdrawal is a temporary facility that allows a deserving customer to draw a specified amount of fund over and above the overdraft limit in order to meet unexpected seasonal cash shortage.

Term Loans

  • Term loans are credit facilities with structured repayment to be effected within a certain period of time. Repayments of a term loan shall be in line with the cash flow program of the customer and nature of business.  A term loan’s repayment can according is monthly, quarterly, semi annually, annually or at lump sum payment.

Merchandise Loan

  • A Merchandise loan is a short term credit facility provided by the Bank against physical pledge of merchandise good or documentary evidence (letter of credit, export documents, warehouse receipt…) as collateral for the loan. Merchandise loan shall be availed for a period of six months but depending on the nature of the business, revolving merchandise loans can be availed which are renewable every six months.

Letter of Credit Facility

  • The Bank approves letter of credit at appropriate margins depending on the credit worthiness of customers, the nature and marketability of products to be imported. LC facility is a credit product that the Bank extends to importers, upon payment of a certain percentage of the value of L/C. Accordingly, L/Cs are opened with a certain percentage of margins and settled upon arrival of documents. The facility can be either for one time or revolving (i.e. for a specified period of time – usually one year).

 Advance on Import Bills

  • It is a provisional account opened to record value of L/C documents received less margin paid until such time that the importer settles the bill and collects document to clear the goods from customs/port. The document should be cleared by the customer upon arrival.

Export Trade Financing

  • Export trade financing refers to the credit facilities extended to exporters as pre-shipment and post-shipment.

Project Financing

  • Project financing is an area where the Bank is involved and finance projects in the medium and long term range.

Guarantee Products

Guarantee products are contingent liabilities which include all types of guarantees such as advance payment guarantees, bid bond guarantees, performance guarantees, retention money, customs bond etc.