Loans for Companies and Non-Incorporated Businesspersons
AK BARS Bank issues loans to companies and enterprises presenting different sectors of economy and having different forms of ownership, as well as to non-incorporated businesspersons. The Bank offers a wide spectrum of credit products both in Russian rubles and in hard currencies. The loans are issued for conducting international operations of its customers as well. The lending is arranged both in the Bank’s head office and its all branches (33 branches).
Loan
The loan is provided by a bullet amount according to the signed Loan Agreement.
As a rule, the loan is issued for realization of the projects which require funds invested by a bullet amount: for purchasing of fixed and intangible assets, for payments in favor of suppliers according to the contracts for the goods supplied and services provided.
Credit line under the limit of issue
The credit line is set up to issue a loan by several tranches within the established limit. The total tranches shall not exceed the amount of the credit line stipulated in the Agreement.
Loans are issued and credit lines are established to companies and non-incorporated businesspersons engaged in commercial business:
- for the tenor of more than 12 months — for realization of investment projects, purchasing of fixed and intangible assets (production buildings and equipment), modernization of equipment and manufacturing lines, and reconstruction;
- for the tenor of less than 12 months — for working capital.
Credit line under the limit of loan debt
Within the lending period unlimited loan tranches are provided should the total amount of non-repaid tranches do not exceed the amount of the credit line stipulated in the Agreement.
This credit line is gainful for working capital of companies and business of businesspersons engaged in trade and trade-intermediary activities, as well as for manufacturing companies.
Revolving credit lines are established for working capital. The Loan Agreement is signed for the period of up to 2-3 years, the tenor of utilization of the loan tranches are established from 3 to 6 months.
Interest rates are fixed on an individual basis depending on the period and purpose of the loan, financial position of the borrower, turnover under his settlement account with AK BARS Bank, his credit history, his relations with the Bank, collateral, etc.
Overdraft
AK BARS Bank offers its clients short-term lending of the client’s settlement account in case of absence or want of funds for making payments under the client’s settlement documents.
Overdraft is a convenient and cheap way of obtaining funds for satisfying urgent needs. This is a short-term lending operation. The Bank effects payments debiting the client’s account when the account balance is temporarily zero or does not contain enough funds.
The procedure of the overdraft operation does not break the normal settlement servicing of the client. When the current (settlement) account balance is zero or the account does not have enough balance, the loan issue is effected automatically. The client submits documents, and the Bank fulfills the client’s payment orders within the established limit.
Overdraft is provided to financially secured and solvent companies with stable turnover under their account with AK BARS Bank.
In case the co-operation between the Bank and the borrower is less than one year, the lending tenor is no more than 3 months.
The loan is issued against the liquid collateral or against no any collateral.
Interest rate under the loan is fixed taking into account the overdraft period, solvency and financial position of the client, his positive credit history and other conditions.
Limit of lending is fixed depending on average monthly funds turnover under the client’s accounts.
Tenor of lending is fixed according to the length and character of the relations between the Bank and the borrower.
Terms and conditions of lending are fixed by the Credit committee of the Bank.
The Bank exercises an operative control over the cash flows of the client’s accounts and analyses financial statements of the borrower during the whole period of the lending operation.
