Business
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What is Manufacturing?
The classification of this involves the mechanical or chemical transformation of inorganic or organic substances into new products.
Lending to this industry has predominantly focused on the following;
- Processing of imported raw materials for export;
- Processing of indigenous raw materials (e.g. Handicrafts);
- Processing of food and beverages.
It should be noted that the Bank’s lending in this industry has been in the main directed towards the processing of imported raw materials for export
Why go with us?
Tonga Development Bank’s Manufacturing loan has:
- A maximum term of 15 years
- Available for the acquisition of plant and equipment to facilitate the manufacturing process
- Minimum contribution of just 25% of total project cost
From
10.00% pa
interest rate
| Manufacturing | |
|---|---|
| Rates | |
| CRR A | 10.00% pa |
| CRR B | 11.00% pa |
| CRR C | 12.00% pa |
| Features | |
| Security | All items purchased with loans funds. The security coverage should be BSV 1.5x with no mortgage or 1.0x with mortgage. |
| Term | Maximum of 15 years, but actual term will depend on project and repayment schedules. |
| Repayments | Depends on the amount of loan and the proposed annual cash flow of the project. |
| Fees | Can be charged to account. |
| Disbursement | Direct to supplier where necessary or according to agreed draw down schedule. |
| Borrowers Contribution | Minimum of 25% of total project cost. |
Eligibility Guideline – Applicants
Applicants considered under this Sector should be:
- Be involved in an existing manufacturing operation;
- Be involved in any other business which has proven to be successful and the project proponents have proven management capabilities.
- Possess a specialized skill, which is pivotal in a manufacturing industry.
Eligibility Guideline – Purpose
This loan may be used for:
- Acquisition of plant and equipment to facilitate the manufacturing process;
- construction of structural facilities;
- working capital
Tourism
Let us help you take that trip of a lifetime.
What is tourism?
This industry involves all facilities for tourist purposes. It covers airlines, travel agents, boating, hotel, bar and restaurant as well as any related tourist facilities.
Why go with us?
Tonga Development Bank’s tourism loans feature:
- Up to $100,000 loans being offered
- Can be repaid by either cash or salary deduction
- Minimum cash deposit of just 25%
From
8.50% pa
interest rate
| Tourism | |
|---|---|
| Features | |
| Security | Mortgage over project land. Insurance required. Debt and interest guaranteed by Directors and shareholders all assets acquired |
| Term | Loans below $100,000 require a term of 6 years. For over $100,000 maximum term of 12 years, especially construction. |
| Repayment Percentage Salary Deduction | By cash, but salary deduction will be considered, 50% salary allowed for repayment of loan, 60% can be considered |
| Disbursement | According to agreed draw down schedule. |
| Fees | Can be charged to account. |
| Borrowers Contribution | Adequate, either cash deposit or sweat equity, of not less than 25% of total cost of project |
| Rates | |
| CRR A | 8.50% pa |
| CRR B | 9.00% pa |
| CRR C | 10.00% pa |
Eligibility Guideline – Applicants
Loans may be for:
- plant, equipment and furniture;
- construction of building;
- transport (to a limited extent);
- working capital
Others
Borrow for a worthwhile purpose.
What is a personal loan?
Any approved personal requirement for furniture, fittings and appliances. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 Times Bank Security Value and with assured ability, preferably by deduct salary arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction. In this instance the term should be restricted to 12 months.
Why go with us?
Tonga Development Bank’s education loan has:
- A highly competitive interest rate
- Flexible borrower’s contribution
- $15,000 borrowing limit
From
11.00% pa
interest rate
| Personal Loan | |
|---|---|
| Loan Features | |
| Security | All items owned by borrowers. The BSV to be equal to or greater than 1.0x for mortgage or 1.5x without mortgage. |
| Term | Normally, the term is 15 months with maximum term of 24 months. |
| Repayment Percentage Salary Deduction | Salary deduction is preferable, up to 50% of net income, 60% can be considered depending on salary scale and other income. |
| Fees | Can be charged to account. |
| Disbursement | Can be paid directly to the borrower or as agreed draw down schedule. |
| Borrowers Contribution | Flexible but depending on terms of loans and security coverage. |
| Maximum Amount | $15,000 |
| Account Keeping Fees | Yes |
Eligibility Guideline – Applicants
1. Eligible Purposes:
Any approved personal requirement including motor vehicles, educational expenses, furniture, fittings and appliances. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 times BSV and with assured repayment ability, preferably by salary deduction arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction.
2. Amount of Loan:
Equivalent to six month salary or regular income. The maximum amount of loan could be higher due to requirements for payment of school fees for overseas institutions.
3. Repayment Monthly repayments are required:
Preferably by salary deduction or bank transfer.
4. Term:
36 months maximum
5. Interest Rate (Refer to Interest Rate structure Annex 2):
The interest rate is set for the term of the loan and is calculated on daily balance outstanding and charged to loan account monthly.
6. Security:
a) Preferred security includes mortgage on leasehold land with improvement, term deposit with TDB, fixed and movable assets and personal guarantee supported by assets. BSV coverage should be at least 1.5 times.
b) The vehicle purchased should be jointly registered in the borrower’s name and the Bank with certificate of Registration held by the Bank until the loan is repaid in full and the Bank’s name can then be cancelled.
7. Limitations:
a) Monthly repayments and other debt commitments are not to exceed 60% of monthly net salary and allowances of principal borrower and co-borrower(s). In marginal cases, regard may be given to other regular sources of cash income but the maximum commitment is not to exceed 60% of net salary.
b) For motor vehicles, preferred minimum cash deposit is 25% of the total cost of the vehicle.
i. repayment is through S/D or PPA
ii. The maximum terms are as follows: Second-hand vehicles: 36 months, New vehicles: 60 months
8. Insurance (Refer to section 2) (g)
Security assets must be insured to TDB’s requirements and owner’s interest assigned to TDB.
a) Security assets financed by the Bank must be insured with the policy assigned to the Bank.
b) It is preferable that all assets pledged as security be insured.
c) The minimum value of assets insured must be at least 1.5 times BSV.
d) Premium can be charge to the account or client can pay cash.
9. Payment of Fees:
a) Establishment fees must be paid in cash upfront before disbursement.
b) Bank fees instituted from time to time shall apply.
10. Computer Code to Use:
L62
11. Credit Risk Rating:
Generally Personal Loans are only approved for existing borrowers and the Personal Loan rating will use the rating already applied to the other loans. Where that is not the case then the general “book” rating of C1 is to apply unless the approving authority approves a higher rating.
Educational
Invest in yourself
What is an Educational personal loan?
Any approved personal requirement for educational expenses. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 Times Bank Security Value and with assured ability, preferably by deduct salary arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction. In this instance the term should be restricted to 12 months.
Why go with us?
Tonga Development Bank’s education loan has:
- A highly competitive interest rate
- Flexible borrower’s contribution
- $15,000 borrowing limit
- Maximum loan could be higher due to requirements for payment of school fees for overseas institutions
From
8.00% pa
interest rate
| Personal Loan | |
|---|---|
| Loan Features | |
| Security | All items owned by borrowers. The BSV to be equal to or greater than 1.0x for mortgage or 1.5x without mortgage. |
| Term | Normally, the term is 15 months with maximum term of 24 months. |
| Repayment Percentage Salary Deduction | Salary deduction is preferable, up to 50% of net income, 60% can be considered depending on salary scale and other income. |
| Fees | Can be charged to account. |
| Disbursement | Can be paid directly to the borrower or as agreed draw down schedule. |
| Borrowers Contribution | Flexible but depending on terms of loans and security coverage. |
| Maximum Amount | $15,000 |
| Account Keeping Fees | Yes |
Eligibility Guideline – Applicants
1. Eligible Purposes:
Any approved personal requirement including motor vehicles, educational expenses, furniture, fittings and appliances. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 times BSV and with assured repayment ability, preferably by salary deduction arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction.
2. Amount of Loan:
Equivalent to six month salary or regular income. The maximum amount of loan could be higher due to requirements for payment of school fees for overseas institutions.
3. Repayment Monthly repayments are required:
Preferably by salary deduction or bank transfer.
4. Term:
36 months maximum
5. Interest Rate (Refer to Interest Rate structure Annex 2):
The interest rate is set for the term of the loan and is calculated on daily balance outstanding and charged to loan account monthly.
6. Security:
a) Preferred security includes mortgage on leasehold land with improvement, term deposit with TDB, fixed and movable assets and personal guarantee supported by assets. BSV coverage should be at least 1.5 times.
b) The vehicle purchased should be jointly registered in the borrower’s name and the Bank with certificate of Registration held by the Bank until the loan is repaid in full and the Bank’s name can then be cancelled.
7. Limitations:
a) Monthly repayments and other debt commitments are not to exceed 60% of monthly net salary and allowances of principal borrower and co-borrower(s). In marginal cases, regard may be given to other regular sources of cash income but the maximum commitment is not to exceed 60% of net salary.
b) For motor vehicles, preferred minimum cash deposit is 25% of the total cost of the vehicle.
i. repayment is through S/D or PPA
ii. The maximum terms are as follows: Second-hand vehicles: 36 months, New vehicles: 60 months
8. Insurance (Refer to section 2) (g)
Security assets must be insured to TDB’s requirements and owner’s interest assigned to TDB.
a) Security assets financed by the Bank must be insured with the policy assigned to the Bank.
b) It is preferable that all assets pledged as security be insured.
c) The minimum value of assets insured must be at least 1.5 times BSV.
d) Premium can be charge to the account or client can pay cash.
9. Payment of Fees:
a) Establishment fees must be paid in cash upfront before disbursement.
b) Bank fees instituted from time to time shall apply.
10. Computer Code to Use:
L62
11. Credit Risk Rating:
Generally Personal Loans are only approved for existing borrowers and the Personal Loan rating will use the rating already applied to the other loans. Where that is not the case then the general “book” rating of C1 is to apply unless the approving authority approves a higher rating.
Vehicles
A low rate personal loan to fund the purchase of your dream car
What is a personal loan?
Any approved personal requirement for motor vehicles. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 Times Bank Security Value and with assured ability, preferably by deduct salary arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction. In this instance the term should be restricted to 12 months.
Why go with us?
Tonga Development Bank’s vehicle loan has:
- A highly competitive interest rate
- Flexible borrower’s contribution
- $15,000 borrowing limit
From
11.00% pa
interest rate
| Personal Loan | |
|---|---|
| Loan Features | |
| Security | All items owned by borrowers. The BSV to be equal to or greater than 1.0x for mortgage or 1.5x without mortgage. |
| Term | Normally, the term is 15 months with maximum term of 24 months. |
| Repayment Percentage Salary Deduction | Salary deduction is preferable, up to 50% of net income, 60% can be considered depending on salary scale and other income. |
| Fees | Can be charged to account. |
| Disbursement | Can be paid directly to the borrower or as agreed draw down schedule. |
| Borrowers Contribution | Flexible but depending on terms of loans and security coverage. |
| Maximum Amount | $15,000 |
| Account Keeping Fees | Yes |
Eligibility Guideline – Applicants
1. Eligible Purposes:
Any approved personal requirement including motor vehicles, educational expenses, furniture, fittings and appliances. Approval should apply to existing good clients of the Bank or if new applicants those who can provide BSV coverage of at least 1.5 times BSV and with assured repayment ability, preferably by salary deduction arrangement. Alternatively approval could apply to new clients where existing personal loan is being taken over from another bank in order to strengthen the overall security position of the new proposal and to ensure repayment capacity through S/D deduction.
2. Amount of Loan:
Equivalent to six month salary or regular income. The maximum amount of loan could be higher due to requirements for payment of school fees for overseas institutions.
3. Repayment Monthly repayments are required:
Preferably by salary deduction or bank transfer.
4. Term:
36 months maximum
5. Interest Rate (Refer to Interest Rate structure Annex 2):
The interest rate is set for the term of the loan and is calculated on daily balance outstanding and charged to loan account monthly.
6. Security:
a) Preferred security includes mortgage on leasehold land with improvement, term deposit with TDB, fixed and movable assets and personal guarantee supported by assets. BSV coverage should be at least 1.5 times.
b) The vehicle purchased should be jointly registered in the borrower’s name and the Bank with certificate of Registration held by the Bank until the loan is repaid in full and the Bank’s name can then be cancelled.
7. Limitations:
a) Monthly repayments and other debt commitments are not to exceed 60% of monthly net salary and allowances of principal borrower and co-borrower(s). In marginal cases, regard may be given to other regular sources of cash income but the maximum commitment is not to exceed 60% of net salary.
b) For motor vehicles, preferred minimum cash deposit is 25% of the total cost of the vehicle.
i. repayment is through S/D or PPA
ii. The maximum terms are as follows: Second-hand vehicles: 36 months, New vehicles: 60 months
8. Insurance (Refer to section 2) (g)
Security assets must be insured to TDB’s requirements and owner’s interest assigned to TDB.
a) Security assets financed by the Bank must be insured with the policy assigned to the Bank.
b) It is preferable that all assets pledged as security be insured.
c) The minimum value of assets insured must be at least 1.5 times BSV.
d) Premium can be charge to the account or client can pay cash.
9. Payment of Fees:
a) Establishment fees must be paid in cash upfront before disbursement.
b) Bank fees instituted from time to time shall apply.
10. Computer Code to Use:
L62
11. Credit Risk Rating:
Generally Personal Loans are only approved for existing borrowers and the Personal Loan rating will use the rating already applied to the other loans. Where that is not the case then the general “book” rating of C1 is to apply unless the approving authority approves a higher rating.
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