BankMuscat
provides working capital facilities in the form of overdrafts, receivables finance, inventory finance and short-term loans in Rial Omani and/or major foreign currencies. Working capital facility is extended to a customer on a revolving basis for the period of time stated, to be used by the customer in certain manner and subject to certain terms and conditions. The customer is expected to conduct the usage of a line of credit within the
line allocated, and the amounts of such sub-limits that may be prescribed by the bank.
The Bank offers
Term Loans in Rial Omani and major foreign currencies for acquisition of capital assets or for any other stated purpose. Such loans can be offered on fixed or floating interest rate
basis.
A Term Loan is a specific sum of money advanced to a customer for specifically stated purpose and is repayable according to a pre-agreed repayment schedule. The money can be available to a customer
in lump sum, or in instalments over a period of time. Repayment can be
lump sum on a specified date, or in instalments over a period of time.
A term loan normally has a maturity date longer than 1 year. A term loan may have a Grace Period or Moratorium
Short Term loan is a specific sum of money advanced to a customer for specifically stated purpose for a tenor of up to three months and is repayable according to a pre-agreed repayment schedule, either in lump sum or in
instalments. Interest on short term loans are normally required to be charged and met monthly in arrears although in exceptional cases, lump sum repayment terms together with interest may be agreed to.
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