Credit Products

Bank of Baroda is the pioneer to start finance for Sugarcane farming in Fiji. The bank is financing for various purposes to suit the needs of farming community and Agricultural Business Enterprises.

Major activities covered are:

Farm Purchase & Farm Development: Farm purchase include loan for buying all kinds of farms; Farm development include cane farm improvement, land preparation, drainage, fencing, cultivation and harvesting of sugar cane, fertilizer and pesticide; purchase of farm machinery and implements like tractor / trailer / truck / van etc.

Forestry & Logging: Loan for planting, replanting and conversion of forests; logging activity includes logging camps, logging contractors and loggers primarily engaged in cutting timber and producing round, hewn or riven forest or wood raw materials.

Fisheries: Loan for ocean and coastal fishing as well as operation of fishponds; loan to purchase boats, outboard motors, nets, fish lines etc.

Livestock: Loan for cattle raising and dairy farming, poultry and broiler farming.

Other allied personal purposes like educational expenses of children, marriage expenses in family, medical expenses, funeral expenses, construction of a small residential house in farm, payment for annual rentals etc.

Eligibility:

· Farmer having an existing leases (except "J" Class Lease) with an unexpired period minimum ten years and clear title is available

· Source of income should justify loan requirements

· Farmer should be a registered member of Cane Grower’s Association

Type of Facility:

· Overdraft: financing to forestry and logging activities, financing for fishing and operation of fish ponds etc

· Demand Loan: To purchase farm, machinery and development of land, purchase of boats, nets; purchase of livestock etc [longer period finance] and farm expenses and other personal expenses.

Amount: depending upon the need based requirement linked to average cane production.

Margin: 50 %

Interest Rate: 12% p.a. Variable

Repayment Period:

Repayment period of maximum five years, after taking into consideration of remaining lease period and cane produce

Security:

Tangible securities in form of Mortgage of Property, Bill of Sale, Crop lien over Standing Crop, Lien on Bank’s Own Deposits, Assignment over Life Policy, Third Party Guarantee etc.

Insurance: Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

TRADE FINANCE (Wholesale, Retail, Hotel & Restaurants)

All persons engaged in Trade of any commodity / goods, which are required by community and trading in them (is not prohibited by or opposed to the public interest).

Major activities covered are:

1. Duty Free Trade: Loans / Overdraft to merchants engaged predominantly in duty free goods, retail and wholesale business.

2. Hotel & Restaurant: Retail establishments selling prepared foods and drinks for immediate consumption such as restaurants, cafes, lunch counters etc. Hotels, rooming houses and other lodging places, restaurant facilities operated with lodging.

3. Others: Wholesale trade agencies; exporters and importers; commission merchants; petroleum bulk stations, gas, scrap metal, waste and junk dealers. Retailing/ selling for household use; shops engaged in selling to general public. Also includes wholesale & retail sales of all kinds of machinery and automobiles, auto parts etc.

Eligibility:

Individuals, Proprietor or Partnership concern and Limited Companies.

Credit facilities can be considered for traders who are established in their line of business preferably for 3 years.

Type of Facility:

Overdraft: Overdraft in form of running account, secured by a charge over current assets/fixed assets that meet the frequent cash requirements for trading cycle

Bill Finance: To bridge the fund gap between date of sale of goods to the receipt of proceeds.

Demand Loan for purchase of Assets: To purchase plant, machinery, godown / warehouse or other assets required for development of business.

Letter of Credit and Bank Guarantee

Amount: Depending upon type of business & Overdraft / Loan requirements.

Margin: 25% to 50%

Interest Rate: 10% p.a(Negotiable - depending upon the exposure and security)

Repayment Period:

All facilities would be granted initially for one year and will be continued further subject to review every year.

For Loan Repayment Period : Max - 15 - years.

Security:

Charge on tangible securities in form of Mortgage of Property, Bill of Sale, Debenture on Assets, Lien on Bank’s Own Deposits, Assignment on Life Policy; Third Party Guarantee etc.

Insurance:

Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

MANUFACTURING & INDUSTRIAL FINANCE

Financing manufacture of products and industrial activities for setting up new business, business expansion, other research & development and day to day operations.

Major activities covered are:

1. Food, Beverages : processing of milk and milk products; processing and canning of fruits and vegetables; milling of grains; processing of copra; manufacture of breads, cakes, biscuits and other bakery products; manufacture of confectionery and sweets, other food items; grinding of condiments and preparation of spices; pounding of yaqona etc.

2. Textiles & Clothing: Manufacture of textiles, garments, rope and twine industries.

3. Woodwork & Furniture : Saw milling, manufacture of veneer, plywood and hard board, furniture making, manufacture of wooden articles, monumental pieces and curios of wood etc.

4. Metal Products and Machinery : Manufacture of furniture and fixtures of metal; metal products like water tanks, containers, nails, bolts and nuts, tubes, pipes etc; manufacture & repairs of agricultural machinery and equipment; repair and renovation of electrical equipments, generators, appliances, refrigerators, air conditioners etc; building & repairing of ships, boats, trucks, buses, trailers, coaches etc.

5. Paper and Paper Products : Manufacture of paper, paperboards, boxes, towels, toilet papers etc.

6. Printing, Publishing and Allied Industries : Manufacture of printed cards, envelopes, stationery; printing, lithographing and publishing newspapers, periodicals, books, maps, atlases.

7. Building Materials : Manufacture of bricks, tiles, cement, lime and plaster, concrete and plaster products.

8. Other Manufacturing Industries: manufacture of soaps, synthetic detergents, cosmetics, toothpaste and toilet preparations; manufacture of paints and varnishes; retreading of tyres; manufacture of plastic products, footwear, jewellery, shell artifacts; manufacture and repairs of items not mentioned above.

Eligibility:

Individuals, Proprietor or Partnership concern and Limited Companies.

Type of Facility:

Working Capital Finance: Overdraft to meet the entire range of short-term fund requirements for day-to-day operations.

Demand Loan / Term Loan: For purchase of Plant & Machinery, construction of building / industrial sheds / godowns / warehouse, technology up-gradation, business expansion, etc

Bill Finance: To bridge the fund gap between date of sale of goods to the receipt of proceeds.

Letter of Credit and Bank Guarantee

Amount: Depending upon type of industries and manufacture of products.

Margin: 25% to 50 %

Interest Rate: 10% p.a(Negotiable - depending upon the exposure and security)

Repayment Period:

For Working Capital finance initial period is of one year which will be continued further subject to review every year.In case of loan repayment period ranging from 3 to 15 years depending upon repaying capacity and also subject to review every year.

Security:

Tangible securities in form of Mortgage of Property (including Plants and Machinery), Bill of Sale, Debenture on Assets, Lien on Bank’s Own Deposits, Assignment on Life Policy, Third Party Guarantee etc.

Insurance:

Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

TRANSPORT FINANCE

Financing for purchase of new or second hand vehicles, repairing of vehicles and financing to tour operators for purchase of vehicles as well as for day-to-day operations/maintenance of vehicles

Major activities covered are:

1. Road Transport : Bus and coach transport, taxi cabs, rental cars and transport tour operators; freight transport by road.

2. Water Transport : Operations of vessels for transport of freight and passengers overseas, coastwise and inland waterways; Sea cruises and sea tour operators.

3. Air Transport : carrying of passengers and freight by regular services.

4. Travel Agents & Custom clearing agents.

Eligibility:

All Transport Operators, Travel Agents: Individuals, Proprietor or Partnership concern and Limited Companies.

Type of Facility:

Working Capital Finance: Overdraft to meet the entire range of short-term fund requirements for day-to-day maintenance / working funds.

Demand Loan Finance: For purchase of vehicles and repairing expenses

Amount: Depending upon type of vehicles and recurring / repairing expenses.

Margin: 50 %

Interest Rate: 10% p.a(Negotiable - depending upon the exposure and security)

Repayment Period:

For Working Capital finance, initial period is of one year which will be continued further subject to review every year.In case of loan, repayment period ranging from 3 to 15 years depending upon repaying capacity and also subject to review every year.

Security:

Tangible securities in form of Mortgage of Property, Bill of Sale of Vehicle, Debenture on Assets, Lien on Bank’s Own Deposits, Assignment on Life Policy, Third Party Guarantee etc.

Insurance:

Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

FINANCE FOR PROFESSIONAL & BUSINESS SERVICES

Finance for purchase of necessary equipment, repair or renovation of existing equipment, acquiring or repairing business premises, purchase of tools and for working capital requirements

Major activities covered are:

1. Legal, medical, dental, accounting and consultancy services etc

2. Data processing and tabulating services

3. Photographic studies including commercial photography

4. Barber and beauty shops; other personal services

Eligibility:

Any individual or firms, who are carrying on any business / professional services independently with or without hired labor such as persons in the medical profession, lawyers, engineers, contractors, consultants, electricians, hair dressers, handicraft artisans etc.

Type of Facility:

Working Capital Finance: Overdraft to meet the entire range of short-term fund requirements for day-to-day operations.

Demand Loan Finance: For purchase of equipment and tools, repairing or renovation of existing equipment, acquiring or repairing business premises.

Amount: Depending upon the borrowers financial needs

Margin: 50 %

Interest Rate: 10% p.a(Negotiable - depending upon the exposure and security)

Repayment:

For Working Capital initial period is of one year which will be continued further subject to review every year whereas Loan will be for a period 3 to 7 years depending upon repaying capacity and also subject to review every year.

Security:

Tangible securities in form of Mortgage of Property, Bills of Sale, Bank Charge over equipment / tools, Debenture on Assets, Lien on Bank’s Own Deposits, Assignment on Life Policy, Third Party Guarantee etc.

Insurance:

Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

BARODA HOME LOAN

Bank has formulated "Baroda HOME LOANS" for ready purchase / construction of Residential House for Self- occupation and for Home Improvement.

Eligibility:

Individuals, Professionals, Civil Servants, Government Employees and Employees of Corporate clients / big business houses

· Must be citizen of Fiji

· Not less than 21 years

· In case of employees – must be in permanent employment for not less than - 5 – years

· Self-employed people must be engaged in business for atleast 5 years

· Property to be acquired should be either Free-hold or Crown Lease / Native Lease

· In Crown/Native lease - remaining lease period should not be less than repayment tenure of the loan.

· Property should be located within city/town boundry

Type of Facility:

Term Loan :

· Home Loan -for purchase / construction of residential house / flat

· Home Improvement – for home improvement including renovation / addition / extension

Amount:

For Home Loan - F$ 200,000

For Home Improvement - F$ 60,000

Margin:

For Home Loan - 20 % Margin

For Home Improvement - 25 % Margin

Interest Rate:

Home Loan :- 1st Year : 8.4%,Thereafter : 10.0% variable

Home Improvement :- 1st Year : 8.4% , Thereafter : 10.0% variable

Repayment Period:

For Home Loan (New House) - Max - 20 - Years

For Home Improvement - Max - 10 - Years

Security:

· Registered Legal Mortgage over the Property

· Collateral Securities like Lien on Bank Deposit, Assignment over Life policy etc

· Third Party Guarantee

Insurance:

Mortgage Protection Cover as well as a House Owner Insurance Policy covering all risks.

BARODA CAR LOANS

To provide financial assistance to different sectors of society for purchase of    vehicle at a competitive rates and flexible 
terms, bank have formulated "BARODA CAR LOANS".

Eligibility:

Individuals, Professionals, Civil Servants, Government Employees and Employees of Corporate  clients / big business houses

Type of Facility:

Demand Loan for purchase of vehicle

Amount:

For new Cars - F$ 50,000

For re-conditioned/Second hand Car - F$ 15,000 (not more than 5 years old)

Margin: 30 % on the value of vehicle.

Interest Rate: 12% p.a variable

Repayment Period:

For New Cars - Max - 60 - months

For Re-conditioned/Second hand Car - Max - 36 - months

Security:

Bills of Sale of vehicle, Assignment of salary (wherever applicable), Bank charge over vehicle noted with LTA, Lien on Bank’s Own Deposits, Assignment on Life Policy, Third Party Guarantee etc.

Insurance:

Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

BARODA PERSONAL LOANS

Finance to meet personal needs of individuals


Major items covered are:

		1. Purchase of Consumer durable viz. TV/VCR, music system, refrigerator, washing machine, 
			furniture, air-conditioner, other domestic appliances.

		2. Purchase of Personal Computer (PC) with printer / software.

		3. Meeting personal requirements like wedding, education, medical, overseas travel etc.

Eligibility: Individuals, Salaried people, Self-employed person, Small Business Class people.

Type of Facility:

		Secured Demand Loan: for purchase of consumer durables and PC
		Unsecured Demand Loan: for meeting personal expenses

Amount:

		For Secured Loan - F$ 7500 or 70% purchase price whichever is lower
		For Unsecured Loan - F$ 2000 (maximum)

Margin: 30 %

Interest Rate:

		For Secured Loan - 12.5% p.a. variable
		For Unsecured Loan - 14.0% p.a. fixed

Repayment Period:

		For Secured Loan - Maximum – 36- months
		For Unsecured Loan - Maximum – 24- months

Security:

		Bills of Sale, Bank Charge over consumer durable purchased / PC, Assignment of salary, 
		wherever applicable, Debenture on Assets, Lien on Bank's Own Deposits, Assignment 
		on Life Policy, Third Party Guarantee etc.

Insurance: 
		Comprehensive Insurance on the items purchased and premium to be borne by the borrower.

BARODA LOAN/OVERDRAFT AGAINST BANK’S OWN DEPOSIT (LABOD)

Bank finance Overdraft / Loan against Bank’s Own Deposit to meet emergencies/business requirements

Eligibility:

Anyone who has deposit with us or any third party deposit with us.

Type of Facility:

Demand Loan or Overdraft.

Amount:

Loan to Individuals - 90% of Deposit amount

Overdraft to Individuals - 90% of Deposit Amount

Loan for Commercial Purposes - 90% of Deposit Amount

Margin: 10%

Interest Rate:

Loan or Overdraft against Own Deposit - 3.00% p.a over Deposit Rate
Loan or Overdraft against Third Party Deposit - 3.75% p.a over Deposit Rate

Loan or Overdraft against Deposit for Commercial purposes - 4 to 5% over deposit rate.

Repayment Period:

Maximum - 84 - months or date of maturity of receipt whichever is earlier.

Security:

Lien on Bank’s Own Deposits.

Insurance:

No Insurance

EXPORT FINANCE

PRE / POST SHIPMENT FINANCE

FOREIGN BILLS PURCHASED

FOREIGN OUTWARD DOCUMENTARY BILLS FOR COLLECTION

NEGOTIATION / DISCOUNTING OF BILLS UNDER LCs

EXPORT FINANCE

Bank of Baroda’s wide network of branches and International presence helps to meet the financial needs of the exporters.

PRE – SHIPMENT   / POST – SHIPMENT FINANCE

Pre – Shipment finance is provided to the exporters for the purpose of procuring raw materials, 
 		manufacturing, processing, transporting, warehousing, shipping    of goods etc.

Post – Shipment finance is provided to an exporter of goods from Fiji from date of extending credit after shipment of goods to the date

of receipt of export proceeds.

Finance is available in Fiji Dollar.

Eligibility:

· Exporters with good track record

· Exporters overdue should not exceed 5% of the average annual export realisation during preceeding three calander years

Features:

· Flexibility of terms and currency

· Provide a useful cash management tool

Terms and Conditions:

· Fixed term to match that of underlying trade transactions ( not exceeding 90 days)

· Credit assessment undertaken to supply a credit limit based on your track records

· Repayment is required in full at maturity

FOREIGN BILLS PURCHASED

Bank allows post-shipment finance to exporter by purchasing Trade Documentary Bills  so that exporter does not have to be 
out of pocket until   the bill is realised in foreign country.

· This facility is considered for Exporters having sound financial standing, undoubted business integrity and adequate security

· Foreign buyer should have a good track record and for whom satisfactory credit report available with bank

FOREIGN OUTWARD DOCUMENTARY BILLS FOR COLLECTION

Exporter’s  documents are forwarded for collection by their banks to a bank in buyer’s country  and are only released to 
the buyer when terms and conditions of payment are met.

· It is an alternate form of payment to a Export Documentary Credit

· Available in major currencies

· Payment is available only after bank receives the proceeds from Buyer’s bank

· Customers of good track record are eligible for this facility

· More cost effective

· Its flexibility makes it easier to take advantage of market opportunities

· Issued on a Sight or Usance basis (upto 180 days)

· Payment default risk is greater as buyer can refuse payment at any point of time

NEGOTIATION / DISCOUNTING OF BILLS UNDER LETTER OF CREDIT

Bank provides an advance against Bills of Exchange negotiated under Letter of Credit in favour of exporter.By negotiating document, the bank will pay exporter using its funds and will collect payment from buyer back at later date. This facility is provided without recourse to exporter, provided he fulfills all the terms and conditions of the LC and LC is confirmed.

IMPORT FINANCE

ISSUING IMPORT LETTER OF CREDIT

IMPORT FINANCE UNDER ADVANCE BILLS (AB)