Project Financing
The Bank extends credit to credit worthy borrowers and projects that have received a thorough appraisal and found to be financially and economically viable and socially desirable in terms of environment protection, employment generation capacity and other social beneft that may be included in the framework of development regulation act of the Government. Although DBE extends long and medium term loans, it also extends loans to special line of credit. The term of loan is, however, to be determined based on the specific needs and requirements of projects.
“The recent focus of the government in relation to the revised credit policy of DBE is to provide medium and long term loans for investment projects in the government priority areas such as Commercial Agriculture, Agro-processing, Manufacturing Industries, Mining and Extractive Industries (preferably export focused) as well as lease financing for Small and Medium Enterprise”
The terms of loans are explained below.
The maximum length of time the Bank advances long term loans is fixed at 20 years including any grace period. Any additional loans or rescheduling must also fall within the 20 years.
This type of loan is loan repayable within three to five years including any grace period.
- The Bank provides permanent working capital as part of the long and medium term loans that will be recovered within
the loan repayment period. - The short term working capital requirement of operational projects fnanced by DBE shall be catered by commercial banks through a tri-partite agreement entered among DBE, commercial banks and borrowers. However, the CBE would be used as a last resort in case of the borrowers could not get short term working capital from any commercial bank.