Collateral Requirement

The Bank will rely primarily upon the financial viability of the project itself. However, in order to minimize default risk or to safeguard the loan, the Bank requires first-degree collateral security for all loans. The Bank shall revalue collateral assets every year.

Projects operating on rented premises are required to present additional collateral outside the project amounting to 100% of the loan. However, if the premise is rented from government organs and written undertaking is obtained from the government organ to enable the bank transfer the renting right to third party in case of default, additional collateral outside the project will not be required.

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