The Islamic Republic of Afghanistan with the end of long run internal conflict, is presently under a vibrant socio-economic reconstruction phase. This has opened up many avenues for Trading, Construction, Manufacturing, Service and Import activities offering a big scope and potential for various Business Activities in these sectors. Realizing the National Importance of Credit deployment in the above segments of the business in order to help the upcoming entrepreneurs; Maiwand Bank has come up with various Credit Facilities for promoting commercial activities in the country.
Maiwand Bank extends credit facilities to meet the entire range of fund requirements of any lawfully permitted commercial activities. The range of assistance is for :
Procurement of Capital goods like Equipment, Machinery,
Furniture, Factory Premises, Vehicles etc.
2. Procurement of Inventories, Raw Materials, Stocks, Spares etc.
3. Supporting supply chains, production & marketing operations, internal cash flows.
Saving - interest charged funds availed on daily product
2. Revolving Credit through out the business cycle.
3. Renewal / Roll over after the expiry date.
4. Competitive Rate of Interest.
Bridges the Fund Gap in business for shorter periods.
2. Easy and Fast Processing.
3. Interest calculated on daily product basis.
4. Renewal / Roll over after the expiry date.
5. Competitive Rate of Interest.
Need based finance on easy terms.
2. Moratorium & Repayment Period based on Fund Flows.
3. Interest calculated on daily product basis.
4. Competitive Rate of Interest.
Bank, through its Letter of commitment by way of Guarantees and Letter of Credits on specified Term and Conditions; will assure the Beneficiary on behalf of the Applicant about the fulfillment of contracted obligations by the Applicant.
Need based finance on easy terms.
2. Release of Mobilization Funds / Advance Payments by Beneficiary to the contractor.
Guarantee to the Buyer about assured Supply of Goods.
2. Better Negotiability of the Purchase Terms
Maiwand Bank is in the process of finalizing the Personal & Retail Banking Products and same will be announced shortly.
Loan facilities provided to the borrowers for over a period of one year & above and are repayable in scheduled installments along with the interest, as mutually agreed up on will be classified as Term loans.
Term Loans are extended for Procurement of Capital
goods like Equipment, Machinery, Furniture, Show Room,
Factory Premises, Vehicles etc.
Any Commercially viable and Lawfully permitted activity either Industrial or Non Industrial is eligible for Term Finance Entrepreneur having valid statutory / business license, experience / qualification in the line of activity is eligible.
Need based finance will be considered by the Bank on individual assessment of the proposals. The assessment will be made on Personal investigation, Confidential reports from Market, Other Banks, Chamber of Commerce or any other controlling agency of the business concerned; The balance sheet, Trading account, Profit and loss account; Memorandum and articles of association if any, and other relevant documents; The age / type / average balances / present balance / nature of operations during the last six months, of the account with us etc.
Margin is 25%. However, it is decided on case to case
Along with prescribed Application, the applicant to submit Financial Statements like Project Report along with the Feasibility Report, Balance Sheet, Trading A/c, PL Account etc., - audited for past 2 years & projections for next two years.
Rate of Interest may range between 15% to 25% and will be assessed on case to case basis. Interest will be calculated on daily product basis and will be applied at the end of every month.
hypothecation / pledge of stocks / goods / machinery
/ equipment etc.
(ii) Mortgage / Creation of charge on suitable Immovable Properties.
Moratorium Period is allowed on the basis of Fund
Flows of the Project.
Repayment in Monthly / Quarterly / Half Yearly Installments in not exceeding 3 years.
Repayment Schedule will be fixed on the basis of Cash Flows, Repayment Capacity & Debt Service Coverage Ratio.
Time Deposit/Term Deposit/Fixed Deposit : These types of deposit accounts are aimed to resource the long time funds from the public, who may not have immediate cash requirements. These deposits are accepted for a certain fixed time or term which will be repayable after the expiry of the period so fixed. Since these deposits remain in the bank for a longer time than the demand deposits for the purpose of long term investments, Maiwand bank offers attractive interest rates with more safety and security of the customer's funds.
Extended for one time and are repayable on demand as
a bullet payment.
2. Interest is payable on monthly basis.
3. Short term in nature generally for a period not exceeding to one year,
4. Will be provided against the
1. (i) Primary securities in the form of
(a) pledge or hypothecation of the Current Assets / Bank Deposits.
(b) against personal or third party guarantees of a reputed customers.
2. (ii) Collateral security in the form of mortgage
or creation of charge on immovable properties.
Demand Loan against pledge of Banks Own Deposits will be allowed against receipt of Simple Demand Loan Application Form and on Pledging the duly discharged Original Deposit receipt of the Bank.
Demand Loan for Commercial Activity on the basis of Pledge / Hypothecation of Stocks, Machinery and any Collateral Security will be assessed as explained under Overdraft Facility on similar terms and conditions.
Margin 10% to 25% & Rate of Interest 15% to 25% on case to case basis assessment.
Repayment 3 to 12 months.
Bank Guarantee is the commitment given by the banker
on behalf of the customer in favor of a third party
(Beneficiary) promising to perform or discharge
the liability of the principal in case of his failure
to perform the contract.
In the present open market scenario prevailing in the country, the Construction, Real Estate and Logistics / Supplies sectors are booming up day by day. This necessitates the Contractors and Suppliers to have a greater leverage and liquidity of their working funds for deploying the same in a more profitable manner. Therefore, Maiwand Bank offers the following three types of Letters of Guarantees on behalf of their customers.
Bid Bond Guarantee
2. Performance Guarantee
3. Financial & Advance Payment Guarantee
Prescribed Application along with underlying Contract
with the Beneficiary or Bid Notification, as the case
2. Statutory License from competent authority (AISA / MOC / MOI) etc.
3. Audited Financials / Business Plans.
4. Upfront & 100% Cash Margin. However, lower cash margins can be considered subject to provision of suitable collateral security and its assessment will be done on case to case basis.
5. Upfront Commission $10 / quarter is charged, if the facility is backed by 100% Cash Margin. In other cases, it is determined on the basis of available cash margin and value of the collateral security.
6. Bank Guarantee is issued for a maximum period of one year and on expiry of the same, the Bank is not liable to the beneficiary, in any manner.
7. Cash Margin / Collateral Security held with the Bank will be returned to the customer only on returning the Original Bank Guarantee
A letter of credit is a written instrument, issued at the request of a buyer (applicant) in favor of the seller (beneficiary) undertaking, to honor the documents or drafts drawn by the seller in accordance with the terms and conditions stipulated in the credit, within a specified time. Letter of Credit one of the Strong facility available under Trade Finance, especially for Importers. This facilitates the Importer to negotiate the deal with better terms and conditions and enables him to conduct the business without locking his own funds. To help the Importers, Maiwand offers the Foreign as well as Inland Letter of Credit. However, only Sight LCs will be opened & no Usance LCs will be issued.
Prescribed Application along with Confirmed Contract
/ Performa Invoice.
2. Statutory License from competent authority (AISA / MOC / MOI / Customs Dept) etc. Audited Financials/ Business Plans.
3. Upfront & 100% Cash Margin. However, lower cash margins can be considered subject to provision of suitable collateral security and its assessment will be done on case to case basis.
4. Upfront Commission @ 0.30% of LC amount for 1st quarter and @ 0.25% of LC amount for subsequent quarters subject to a minimum commission of $ 300.
5. Cash Margin / Collateral Security held with the Bank will be returned to the customer only on completion of the transaction under LC.
Facilitates the Customer to avail the pre-determined
credit limit as per the business requirements.
2. Available in the form of revolving credit for one year, which can be renewed / enhanced based on performance.
3. Running account, where the customer is allowed to operate within the limit prescribed as per convenience and requirement.
4. The amount of Overdraft limit will be decided based on the nature of the business, value of security and the margin provided by the borrower. Entrepreneur having valid statutory / business license, experience / qualification in the line of activity is eligible.
5. Based finance will be considered by the Bank on individual assessment of the proposals. The assessment will be made on Personal investigation, Confidential reports from Market, Other Banks, Chamber of Commerce or any other controlling agency of the business concerned; The balance sheet, Trading account, Profit and loss account Memorandum and articles of association if any, and other relevant documents; The age / type / average balances / present balance / nature of operations during the last six months, of the account with us etc.
6. Generally prescribed Margin is 25%. However, it is decided on case to case basis.
7. Along with prescribed Application, the applicant to submit Financial Statements like Balance Sheet,Trading A/c, P&L Account etc., - audited for past 2 years & projections for next two years.
8. Rate of Interest may range between 15% to 25% and will be assessed on case to case basis. Interest will be calculated on daily product basis and will be applied at the end of every month.
9. Facilities will be secured by way of: hypothecation / pledge of stocks / goods / machinery / equipment etc. And/or Mortgage / Creation of charge on suitable Immovable Properties.
Products & Services
Charges in USD/EURO/GBP
Charges in Afghani
|1.International outward fund transfer|
|USD/ Euro/ GBP transfer|
|- Commercial purposes|
|- Upto USD 40,000 or equivalent||USD 100||NA|
|- More than USD 40,000 or equivalent||0.25% of the amount remitted||NA|
|- Personal purposes upto USD 15000||USD 50||NA|
|- Personal purposes more than USD 15000||USD 100||NA|
|- Commercial purposes||AS FOR USD REMITTANCE||NA|
|- Personal purposes||USD 10|
|2.International inward transfers|
|All currencies||15 GBP/EURO/USD||NA|
|3.Follow up swift message|
|USD 20||Afn 1000|
|4.Domestic fund transfers|
|Within the bank||NIL||NIL|
|- For USD auctions||NA||Afn 1000|
|- For other purposes||USD 40 per USD 100,000 after two days of deposit USD 40 for any amount||1000|
|5.Cheque collection through clearing house||NIL||NIL|
|Charges for cheque returning||USD 10 +other banks charges||Afn 500+other banks charges|
|Inward documentary bills for collection||0.25% (min USD 50)+ courier charges||0.25% (min Afn 2500)+ courier charges|
|6.Letter of Credit|
|- Issuance||0.30% per qtr min USD 300||NA|
|- Processing of bills under LC||0.15% Min USD 50||NA|
|- Amendment||USD 50 per amendment||NA|
|- Confirmation||Actuals of confirming bank||NA|
|- Advising||USD 100||NA|
|- Amendment||USD 50||NA|
|- Negotiation||0.25% Min USD 200||NA|
|- Confirmation||0.25% Min USD 201||NA|
|- Sending of LC||USD 50+ courier charges||NA|
|- Collection||0.15%+ courier charges||NA|
|Issuance charges per quarter|
|- 100% margin||USD 20 per quarter||Afn 1200 per quarter|
|- Above 70% to less than 100% margin||0.35% per quarter||0.35% per quarter|
|- Above 50% to 70% margin||0.60% per quarter||0.60% per quarter|
|- Above 25% to 50% margin||0.75% per quarter||0.75% per quarter|
|- 25% margin||1.00% per quarter||1.00% per quarter|
|Account blocked certificate||USD 20 per quarter||Afn 1200 per quarter|
|8.Interest rates on loans|
|Commercial loans||16%-20% per annum||16%-20% per annum|
|Consumer/ personal loans||16%-20% per annum||16%-20% per annum|
|Staff personal loan||10% per annum||10% per annum|
|Loan processing fees|
|- Hypothecation accounts||1.00%||1.00%|
|- Pledge accounts||1.25%||1.25%|
|Consumer/ personal loans||NIL||NIL|
|Security verification charges||USD 25 for each verification||USD 1250 for each verification|
|9.Inter branch transaction - Cash handling charges|
|Inter branch cash transaction up to USD 10,000||Nill||Nill|
|Inter branch cash transaction above USD 10,000||USD 70 per USD 100,000 or part thereof||Nill|
|No charges on inter branch cash AFN Transaction||Nill||Nill|