Short-Term Multipurpose Limit

Short-term multipurpose limit (STML) is an arrangement with a customer within which all types of short-term products from the Bank catalogue (loans, guarantees, letters of credit, bill discounting, bill guarantee and similar with a maturity date of individual product of up to 1 year) may be approved to the customer.

After approving the short-term multipurpose limit, the Bank and the customer conclude a Limit Agreement based on which individual products are approved within the limit validity period at the CC1 decision-making level

Maximum loan amount

Based on the customer’s credit standing, or up to 30% of average working capital in the last 12 months

Limit validity period

12+12 months, so that no individual product may have the repayment/validity period longer than 12 months and that no individual product may be approved in a period longer than 12 months from the day of the limit approval

Limit approval

  • STML is initially approved for a 12-month period
  • Extension of this limit by another 12 months is made by approving a new limit in the same amount while annexing all existing products in use towards the new limit

Repayment method

The limit expires on a one-time basis, while the repayment of each product depends on the product itself

Interest and fees

Based on the individual product and in accordance with the Price list for micro enterprises

Security instruments

Adequate number of bills of exchange and contractual authorisations of the customer and other in accordance with the Bank’s credit policy. Each individual product within the approved limit is linked to security instruments under the signed Limit Agreement

Limit types

Dinar limit or foreign currency limit (foreign currency limit and dinar limit with a currency clause)

Other

Total short-term limit only includes principal amounts. Interest, fees and commissions are not its integral parts, but any failure to pay them prevents the approval of new products in accordance with the approved limit.
Total amount of approved individual products must not be higher than the amount of the approved limit at any time during the limit validity period.
It is possible to limit the maximum amount of certain products from this catalogue (e.g. loans, payable guarantees, bill discounts, etc.) within the STML.

 

Short-term multipurpose limit (uncommitted) is a limit defined in accordance with the borrower’s credit standing and allowed to individual customers for a 12-month period, within which all types of short-term products from the Bank’s catalogue (loans, guarantees, letters of credit, bill discount, bill guarantee and other) may be approved to the customer

Limit validity period

Repayment period for individual products may not be longer than 12 months

Other

For this type of limit, the Bank will not conclude any agreement with the customer, but  for the limit to be approved, it is necessary to forward the application to the Risk Management, based on whose decision individual products may be approved to the customer.
Within this limit, any individual placement would have to be processed at an appropriate decision-making level. Specific security is established and interest and fees are defined for each individual agreement

 

Additional notes:

Start-up customers may submit applications for any short-term loans under the conditions defined for each individual product if they:

  • submit their annual statements certified by the NBS
    provide an explanation and analysis of the profitability of investment, based on which a projection of primary sources of loan repayment may be made
  • The loan must be 100% effectively covered and the interest rate is 2% higher (except for loans 100% covered by a cash deposit / pledge of commission-based placements / pledge of securities) than the regular interest rate for each individual product.