A frame loan is an agreement between the bank and the client defining the maximum debit of a client to the bank within a particular time period.
A frame loan may contain all types of loans for legal entities offered by the bank, as well as guarantees and letters of credit. Collateral referring to frame loan is registered only once and costs of individual credits are hence reduced!
Frame loan is intended to repeated and new clients where financial analysis shows that there is, or there will be, a need for various types of lending services within a particular time-period.
ADVANTAGES OF FRAME LOANS:
- Flexible use
- Quick application processing, considering the fact that the decision within the frame loan limit may be made shortly;
- Cost reduction – collateral is registered only once;