Major product and services offered by Prime Bank
General Credit Unit (GCU)
Prime Bank gives the credit facilities to finance current assets and loans to finance fixed assets in the form of Working Capital Finance, Capital Machinery Finance, and Real Estate Finance, Work order Financing/Construction Business, Import and Trade Finance.
General Credit Products & Services:
Short-term loans are used to finance inventory, account receivables or other current assets i.e. to finance the working capital requirement. Forms of short-term loan are given below:
01. Cash Credit:
Cash credit account is like a current account with a limit up to which one can withdraw from the bank. Cash credit is normally sanctioned for a period of one year where a regular limit is sanctioned against goods to meet day to day expenses of business.
02. Overdraft (General)
Under this, a regular limit is sanctioned to meet day to day expenses of business. This form of credit is given to the business where maintenance of stock on a regular basis is not possible. The account is adjusted by the sale proceeds or from own source of the customer.
03. Secured Overdraft
When overdraft is allowed against lien of FDR or other financial instruments, it is termed as Secured Overdraft (SOD). Secured Overdraft (SOD) facility to the borrower may be allowed generally in the following ways:
– Overdraft- against guarantee
– Overdraft-against FDR in the name of borrower
– Overdraft- against FDR in the name of 3rd party
– Overdraft- against savings certificate
– Overdraft- against wage Earners Dev. Bond
– Overdraft- against DPS
04. Bill Discounted and Purchased
Prime Bank gives advances to customers by discounting or purchasing their bills of exchange. Such bills of exchange arise out of commercial transactions both in inland trade and foreign trade.
Long-term loans are used to finance equipment, real estate and other fixed assets. The forms of long-term loan are given below:
01. Lease Financing:
Under lease financing we cover equipment/vehicle financing. It is a term financing repayable through lease rental in the form of equal monthly installments. Ownership of the leased out vehicle under the lease agreement covering comprehensive risks belongs to the Bank.
02. Hire Purchase:
This is also given to procure equipment/vehicle. Ownership of the equipment/ vehicle to be purchased under the Hire-Purchase agreement covering comprehensive risks belongs to both the Banker and the customer. Hire-Purchase facility is repayable by depositing equal monthly installments (including principal and interest amount).
03. Loan (General):
This facility is used to meet the expenditure of civil construction and other infrastructure development. Loan (Gen) facility is repayable by depositing equal monthly installments.
04. Term Loan for NBFIs:
Term loan for NBFIS is provided to enable their financing activities to others. It is given as per instruction of Bangladesh Bank circulars and at a lower interest rate based on some grading of the NBFIs.
Real Estate Finance
01. House Building Loan (Commercial):
This form of credit facilities is allowed to individuals /groups for construction of building and completion of finishing works to be used for commercial purposes.
02. House Building Loan (Residential):
This form of credit facilities is allowed to individuals/ groups for construction of building and completion of finishing works to be used for residential purposes.
Import Finance/Trade Finance
01. Letter of Credit (L/C):
Importers are given this sort of facility to import different commodity items, capital machinery and any other permissible items. L/C related shipping document is kept as primary security. Cash margin and counter guarantee are obtained from the customer to secure its position. Two types of L/C facility are provided to –
– Sight L/C- payment should be made just after receiving the documents.
– Deferred L/C- the beneficiary allows the importer time to pay for the documents.
Loan against Trust Receipt (LTR) is a fund facility provided to importer to retire L/C related shipping documents. Advance against a LTR obtained from the customer is allowed when the documents covering an import shipment are given without payment. The customer holds the goods or their sale proceeds in trust for the bank until the LTR is fully paid off. Letter of Trust Receipt is kept as primary security, which creates the banker’s lien on the goods. LTR facility is adjusted from sale proceeds of Imported goods or cash from own sources of the customer within the validity. Validity of the LTR A/C vary from 30 to 180 days depends on the nature and amount of items imported or as per Bangladesh Bank guidelines.
Lease Finance Unit
Prime Bank provides one of the most convenient long term sources of loans in the industry for acquiring capital machineries and equipments under lease financing. It is a very popular scheme whereby a customer is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of installments.
Structured Finance Unit
Prime Bank offers customized, friendly, and flexible financial solutions to customers and strives to ensure financing package in a cost-effective manner.
Structured Finance Unit deals with project financing and covers virtually every sector of the economy with a focus on infrastructure projects, project finance, acquisition finance, securitization, and advisory services.