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:
- 1. Be involved in an existing manufacturing operation;
- 2. Be involved in any other business which has proven to be successful and the project proponents have proven management capabilities.
- 3. Possess a specialized skill, which is pivotal in a manufacturing industry.
Eligibility Guideline – Purpose
This loan may be used for:
- 1. Acquisition of plant and equipment to facilitate the manufacturing process;
- 2. construction of structural facilities;
- 3. working capital
