- Flexible and favorable terms
Trade credit line
Trade credit line
The trade credit line offers its customers long-term, flexible interest rates and the opportunity to get the desired amount of credit depending on the size of their business.
Benefits
Terms and conditions
|
Trade credit line |
MNT | USD | EUR | RMB |
JPY |
|
Credit maximum |
Depends on the size of the business, capital, financial capacity, and trade turnover. |
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|
Commercial credit line opening service fee / no service fee is charged for opening a line backed by term deposit as collateral / |
1% of the line amount up to a maximum of 1,500,000 MNT | 1% of the line amount up to a maximum of 1,000 USD | 1% of the line amount up to a maximum of 1,000 EUR | 1% of the line amount up to a maximum of 5,000 RMB |
1% of the line amount up to a maximum of 5,000 JPY |
|
Commitment fee/ annually/ |
0%-2.0% |
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Term of trade credit line |
Up to 60 months |
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|
Fee for changing the original loan terms |
0% |
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|
Application fee |
30,000 MNT | 10 USD | 10 EUR | 100 RMB |
1,000 JPY |
|
Credit recording enquiry fee /during loan analysis procedure/ |
Individual – 1,000 MNT Corporate- 1,000 MNT |
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| Note:
– If the interest rate of the external source line is 0%, the customer’s commercial loan interest rate may be 0%. |
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Pre-shipment loan terms:
|
Pre-shipment loan terms |
MNT | USD | EUR | RMB |
JPY |
|
Maximum amount |
Within the credit lines, the amount of trade agreements and transactions shall not be exceeded |
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Interest rate /annually/ |
Source cost + 2.0% -4.0% |
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Loan term (depending on product turnover) |
Up to 60 months |
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Service fee |
0% |
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|
Application fee |
30,000 MNT |
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|
Full and partial prepayment fee |
According to the terms of the foreign bank interest rate |
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|
Credit recording enquiry fee /during loan analysis procedure/ |
Individual – 1,000 MNT Corporate- 1,000 MNT |
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| Note:
The cost of resources includes tax costs associated with attracting external resources, interest and non-interest costs, and required reserve costs. |
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Post-shipment loan terms:
|
Post-shipment loan terms |
MNT | USD | EUR | RMB |
JPY |
|
Maximum amount |
Within the credit lines, the amount of trade agreements and transactions shall not be exceeded |
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|
Interest rate /annually/ |
Source cost + 2.0% -4.0% |
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|
Loan term (depending on product turnover) |
Up to 60 months |
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|
Service fee |
0% |
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|
Application fee |
30,000 MNT |
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|
Full and partial prepayment fee |
According to the terms of the foreign bank interest rate |
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|
Credit recording enquiry fee /during loan analysis procedure/ |
Individual – 1,000 MNT Corporate- 1,000 MNT |
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| Note:
The cost of resources includes tax costs associated with attracting external resources, interest and non-interest costs, and required reserve costs. |
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Requirements
- Running the business in the last 12 months and continuing it as a going concern
- Good credit history and score and other evidence of ability to repay the loan
- Collateral to satisfy the bank’s requirements
- Other requirements from the bank on a case by case basis
Required documents
- Official request/amount, interest, term and collateral pledged should be mentioned/
- Loan Application / Bank’s application /
- Resolution of the Board of Directors on obtaining a loan. / Decision on the amount, interest, term, collateral of the requested loan and appointment of the person authorized to sign /
- Copy of company certificate, copy of company charter / stamped by state registration office /
- Copy of ID card of the person authorized to sign the loan agreement (founders, CEO, CFO, etc.), borrower’s application form (if legal entity)
- Business licenses, plans and other documents
- The purpose of the loan, contract, project, etc.
- The market and competitor’s analysis
- Tax reference
- GCCA reference / in the name of the organization and shareholders /
- Reference from GASR / on behalf of enterprises and major shareholders /
- Financial statements of the company certified by the Audit and Tax Administration – / for the last 4 quarters, at the end of the last year /
- Financial statements at the end of the year. These include: list of receivables, current assets, fixed assets, payables and liabilities and sales, unit cost, balance sheet for the last 1 year
- Account statement / last 12 months /
- Pledge of immovable property (if the pledged property is in the name of another organization, a copy of the company’s certificate, charter, decision and resolution authorizing to pledge)
- Collateral historical and detailed reference
- Pledged land certificate, contract and cadastral map
- List and certificate of pledged machinery and equipment
- Proof of tax payment in case of real estate purchase
- Loan agreement and loan account statement if you have outstanding loans with other banks and NBFIs.
- Other required additional materials
