በጊዜ የተገደበ ብድር

Granted to be repaid within a prearranged repayment period of time with interest and Paid in a lump sum, monthly, quarterly, semi-annual or annual installments.

Short Term Loan

• Repayable within 12 months.
• The loan period is short and self-liquidating in the sense that it generates its own repayment.
• Used in financing seasonal increase in current assets
• purchase of raw materials/merchandise
• No grace period for such loans, but flexible and relaxed repayment term

Medium Term Loan

• To be repaid between 13 to 60 months (including) grace period.
• Expected in financing medium term working capital needs and acquisition and/or leasing of fixed business assets (buildings, leased land, machinery, equipment, public transport vehicles, trucks and trailers, etc.),
• To facilitate the establishment of new projects and the expansion of existing ones
• If not for working capital purposes, such loans request hall be supported by feasibility study, cash flow projections, and/or projected financial statements.
• The repayment of medium term loan is usually scheduled on a periodic repayment or installment, based on the cash flow of the business.
• Grace period based on the justification provided in the feasibility study and/or business plan.

Long Term Loan (Investment credits)

• Generally extended for capital formation through asset creation.
• Investment loans bring technological upgrading resulting in increased production, productivity, and incremental income to the borrowers.
• Intended to create income-generating assets in real sectors of the economy.
• provided over a long-term period of 5 to 15 years
• mainly aimed to finance businesses that are projects in nature, viable and profitable projects
• Purpose includes project financing, backing start up working capitals, purchase of construction equipment, or other physical assets.