CREDIT PRODUCTS

CREDIT PRODUCTS

Our Credit facilities are specially designed for SMEs and Corporates involved in profitable business ventures. Our Credit products are available to entrepreneurs in a variety of sectors like Trade and Commerce, agriculture, among others. These loans can be used as Start-up Capital, or expand businesses through asset acquisition. Visit any CIB outlet near you for more details on our credit facilities!

TRADE FINANCE

Trade finance solutions made specially for your business

With documentary instruments such as letters of credit and bank guarantees, our state of the art, flexible business solutions are customised to enabling you gain quick access to trade credits & helping you make the most of your business endeavours.

PRODUCT DESCRIPTION

These are credit facilities intended to facilitate the trading needs of importers, exporters and local traders. The products under the trade finance offering include;

Letters of Credit

This is a payment undertaking given by the bank, to the overseas/domestic seller/supplier, which is issued on behalf of the importer/buyer. Payment is effected upon presentation of required documents by the seller/supplier within a specified time frame, provided all terms and conditions of the letter of credit are complied with.

Bank Guarantee

This is a written undertaking by the bank at the request of the client in favour of a beneficiary for supplying goods or services. The bank agrees to pay the third party in the event that the client fails to meet his/her obligations.

PRODUCT FEATURES

Maximum repayment period depends on product but not exceeding one year.
Eligibility

Loan tenor: One year

Flexible repayment modes (one-off lump sum payment at a given date, monthly, quarterly, semi-annually and annually or revolving credit line)
Maximum Loan Amount – to be determined by applicant’s repayment capacity.
Maximum Loan to Collateral value is 80% of the Forced Sale Value
Pro forma Invoice from the seller.
Copy of the Import Declaration Form (IDF).
Certificate of Insurance or Marine Insurance Policy if covered locally

For Bank guarantees;

A bond or guarantee application on CIB‟s standard for with an indemnity terms and conditions. Should be signed by only the account authorized signatories in accordance with the mandate held with CIB
All formats for the bond or guarantee should be provided by the customer, except when they are statutory Board guarantees or bonds.
A copy of the customer’s contract with the beneficiary (if applicable)
A copy of valid identification documents for the authorized account signatories
A certificate of completion for previously handled projects (performance bond)
A Bank account statement for at least 1 year
Copies of contracts for previously handled projects if available
Memorandum and Articles of association (if updated)
Registered company resolution to borrow
Certificate of incorporation (if updated)
CRB Card
Audited accounts for the last two years
A copy of the acceptable collateral’s ownership document
2 recent coloured passport size photos for the applicant

BUSINESS LOANS

Credit solutions you need to smoothly run your business
We understand that financing is critical to the success of your business. Whether you need to finance day to day operations, expand your business or acquire assets, our quick and easy business loans have got you covered!

PRODUCT DESCRIPTION

This is a short to medium term credit facility to provide finance to business community for the purposes of working capital, financing day to day operations, bridge finance, and business expansion, acquiring assets, business expansion and other related business needs. It is targeted towards the following categories of customers;

PRODUCT FEATURES

a. Loan tenor: Up to five years
b. Flexible repayment modes (monthly, quarterly, semi-annually and annually)
c. Maximum Loan to Collateral value is 80% of the Collateral Forced Sale Value.

ELIGIBILITY

a. Business should have been in existence for at least 2 years
b. Collateral required and applicant must be the legal owner.
c. Applicant should have held an active account with CIB for at least 3 months
d. The collateral property should be insured for full replacement -all forms of damage.

PRODUCT REQUIREMENTS
Sole Proprietors

a. A duly completed and signed loan application form
b. Consent to provide information to CRB
c. 2 most recent coloured passport photos
d. A copy of applicant’s identification document
e. A valid trading licence
f. Certified statement of particulars of a registered business name
g. Certified certificate of registration (certificate issued by Ministry of Education, where the proprietor’s business is education)
h. Audited accounts for the last two years
i. Bank statements for the last six months
j. CV of the business person
k. Projected cash flow statements for the business for at least 12 months

Companies

a. A duly completed and signed loan application form
b. Consent to provide information to CRB
c. A copy of the valid trading license
d. 2 most recent coloured passport photos for each of the directors
e. A copy of identification document for each of the directors
f. Duly registered resolution to borrow/sell/purchase
g. Company profile and management profiles
h. Audited accounts for the last two years
i. Bank statements for the last six months
j. Projected cash flow statements for the business for at least 12 months
k. Certified company form 7 (form 8 where the directors have since changed/additions have been made)
l. Certified articles & memorandum of association
m. Certified certificate of incorporation /registration (certificate issued by Ministry of Education, where the proprietor’s business is education)
n. Certified copy of annual returns filed for the past 2 years

Partnerships

a. Minutes of meeting to borrow/sell/purchase
b. Cover letter from the Managing Partner forwarding the minutes (on the firm’s headed paper)
c. Certified partnership deeds and details of partners
d. Certified copy of the certificate of business name registration
e. Certified copy of statement of particulars of business
f. A duly completed and signed loan application form
g. Consent to provide information to CRB
h. 2 most recent coloured passport photos for each of the partners
i. A copy of identification document for each of the partners
j. Firm profile and partner profiles (practicing licenses –where applicable)
k. Audited accounts for the last two years
l. Bank statements for the last six months
m. Projected cash flow statements for the business for at least 12 months

Associations, NGOs, Co-operative societies, Unions

a. Certificate of registration
b. Minutes of meeting to borrow/sell/purchase
c. Certified constitution/bye laws
d. Written approval by registrar for the limit borrowed
e. A duly completed and signed loan application form
f. Consent to provide information to CRB
g. 2 most recent coloured passport photos for each of the authorized signatories
h. A copy of identification document for each of the authorized signatories
i. Audited accounts for the last two years
j. Bank statements for the last six months
k. Projected cash flow statements for the business for at least 12 months

All applicants:

a. Tenancy agreements (where applicable)
b. Copy of the certificate of title
c. Assignment of rental/business proceeds for self-employed applicants
d. Property to be valued by the Bank’s approved valuation firms
e. Business (where applicable) and security assessment report
f. Consent to mortgage and ground rent receipts (for leasehold properties)
g. Original release of mortgage/withdrawal of caveat (where there is encumbrance on property)
h. Certified decree absolute (where customer is divorced)
i. Certified death certificate (where spouse /joint owner of the land is deceased)

BUSINESS OVERDRAFTS

Option 1
Keep your business afloat with our Business Overdrafts
When you need a quick fix to the unexpected expenses your business incurs, our business overdrafts will be here for you. With Competitive interest rates and fees, our business overdrafts will keep your business going.

Option 2
Get the cash flow you need to keep your business running
If you’re looking for lines of credit to help you quickly respond to emergencies in your business, then our business overdraft is the answer! Our business overdrafts are a convenient, short term credit facility with competitive interest rates ideal for unforeseen situations!

PRODUCT DESCRIPTION

This is a credit facility targeting Small and Medium Enterprises plus Corporate entities to meet their working capital needs or to fund their temporary cash shortfalls.

PRODUCT FEATURES

a. 1-12 months loan tenor, facility paid up at the end of the tenor
b. Can be drawn anytime up to the approved limit
c. Collateral that can be pledged includes Immovable collateral – Land and Buildings (Loan To Value Ratio -80% of the forced sale value), CIB Fixed Deposits (Loan To Value Ratio-90%) and Government Securities (Treasury bills and Bonds; Loan To Value Ratio -80%)

ELIGIBILTY

a. Registered Small and Medium Enterprises with good account turnover
b. Applicant with existing (good repayment record/performance) credit history with Bank
c. Applicant should have opened an account with the Bank
Business should have been in existence for at least 2 years

PRODUCT REQUIREMENTS

a. Audited accounts for the last three immediate years.
b. Management accounts/ reports for the period not covered by the audit
c. Cash flow forecasts for the next one year.
d. Project proposal (if applicable).
e. Up to date certified memorandum and Articles of Association, Resolution to allow borrowing.
f. Copy of the securities documents.
g. Certificate of incorporation & trading licenses.
h. VAT and/ Tin certificates.
i. Recent annual returns
j. Copies of valid ID for the authorized signatories and Directors.
k. Registered resolution to borrow
l. Bank account statement for the last six months.

AGRO BUSINESS LOANS

Option 2
Give your agro-business the push it needs with our Agro-support loans
Whether you are an individual, Company, SACCO or Co-operative society, our Agro-support loans can be customised to meet your needs & help you make the most of your business.

PRODUCT DESCRIPTION

Agro-Support loans are intended to finance Agro-based business/activities in the entire value chain specifically individuals, Companies, SACCOs and co-operative Societies involved the agricultural sector i.e. production, processing and marketing of products, animal production (diary, poultry and piggery projects), fishing and fish farming, bee keeping as well as food processing i.e. grain mills, oil mills and hullers.

PRODUCT FEATURES

• Individual production loans up to UGX 5Million
• Individual/Companies involved in processing and Marketing of up to UGX 100Million
• Grace period of four months for seasonal crop farming and six months for individuals /companies involved in processing and marketing.
• Maximum Loan to Value ratio of 80% of Forced Sale Value of the landed property.

ELIGIBILITY

For individual borrowers;
a. Applicant should be 18 years and above
b. Borrower must have a minimum of 4 seasons (2 years) experience in the agricultural activity to be financed with ascertainable cash flows.
c. Enterprise must be carried out on a profitable/commercial
d. scale
e. Evidence of Farming Contract between the buyer and farmer where applicable.
f. Proof of additional source of income where applicable.
g. Possession of an account with CIB
h. Good credit history for the existing borrowers
i. Valid Identification (National ID)
j. Ownership of farming land

For groups/associations/Co-operatives

a. The Group/Association should be legally registered
b. It should have a written constitution and rules governing
its operations
c. It should have clear structures clarifying roles within the
association
d. There should be a close match between the activities and
the group’s experience and financial capacity
e. The group should tend to concentrate on relatively high value produce rather than low value staples
f. Approved maximum liability from registrar of co-operative s for Co-operatives.

Collateral eligibility

a. Guarantees from partners and government
b. Land titles
c. Land sales agreements for amounts up to UGX 1,000,000 supplemented by joint/group guarantees.
d. Ware House receipts
e. Forward contracts from vetted institutions/buyers
f. Comprehensively insured equipment/machinery
g. Registered Group and Association guarantees

For companies;

a. Filled application form
b. Copy of the trading licence
c. Memorandum and Articles of association
d. Company form 7 and form 8 (where applicable)
e. Registered company resolution to borrow
f. Certificate of incorporation
g. Audited accounts for the last two years
h. Proof of source of income and projected cash flows for the loan term.
i. A copy of the acceptable collateral’s ownership document (Land title, car log book)
j. Copy of valid identification for the directors
k. 2 recent coloured passport size photos for the applicant
l. A bank account statement from the applicant’s other bankers for at least 6 months (If the applicant has not been banking with).

For Individuals:

a. Filled application form
b. Copy of the trading license
c. Audited accounts for the last two years
d. Proof of source of income and projected cash flows for the loan term.
e. A copy of the acceptable collateral’s ownership document (Land title, car log book)
f. Copy of valid identification for the directors
g. 2 recent coloured passport size photos for the applicant
h. A bank account statement from the applicant’s other bankers for at least 12 months (If the applicant has not been banking with).

• Faster processing
• Grace period of 3-6 months offered
• Flexible repayment period of 6 months -1 year for seasonal farmers and 2-5 years for processing/marketing customers
• No early settlement charge
Cosponsored annual sensitization clinics/workshops with FICA SEEDS(U) LTD

PERSONAL LOANS
Salary Loan

The CIB Salary Account is a product made for salary earners.

Main features:

Minimum balance of UGX 10,000
Monthly ledger fees of UGX 11,000
Account holders issued ATM card on request
Basic requirements:

Initial deposit of UGX 10,000
Two passport size photos
Valid identification documents ( National ID, Drivers License, Passport, Employee ID)
Benefits:

You can acquire a quick salary loan
Your salary is your security
Convenient banking through Mobile banking

 

My Motoka

For clients interested in purchasing personal/commercial vehicles to ease their movement or business transportation,the CIB ‘ My Motoka’ account i helps you own your dream car.

Main features:

Minimum balance of UGX 10,000
Account holders issued ATM card on request
Basic requirements:

Opening balance of UGX 100,000
Two passport size photos
Valid identification documents ( National ID, Drivers License, Passport, Employee ID)
Benefits:

Quick acquisition of car loan
Adequate payback period of two years
Competitive interest rate
convenient banking through Mobile/ Internet banking

Short term overdrafts
MORTGAGES