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Short Term Loans

Short Term Loans

These are facilities with a tenure of 1 to 3 years. They are typically for the working capital requirements of a qualifying business. More specifically, they are intended to facilitate key operational requirements that directly aid production such as purchase of raw materials and productive inputs.They normally complement a running or new project loan and are disbursed when the project is ready to commence operations, but stand-alone facilities can also be considered.

Short term loans may also be used to acquire assets which can generate enough cash flows to service the loan over a tenure not exceeding 3 years. The facility may be accessed by both existing and green field projects.

Qualifying Sectors/Businesses:

These facilities are extended in line with the government’s defined priority sectors namely:

  • Agriculture and Agro-industrialization
  • Manufacturing
  • Infrastructural Development
  • Tourism and Hospitality
  • Human Capital Development (Health and Education)
  • Minerals, Oil and Gas

Basic Loan Terms

Loan terms vary from project to project, depending on the nature of the business. The exact length of the tenure is determined by the project cash flows and the implementation schedule

Interest Rates

These are determined by source of funds and sectors and are generally attractive.

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