A framework loan is an agreement similar to a revolving loan, which allows the client to draw upon a set maximum loan amount at any time with in a set period. The service can contain various types of loans, as well as bank guarantees and Letters of Credit. Collateral for a framework loan is registered only once, which means that the cost compared to individual loans is reduced.
A framework loan can be provided in cases where a financial analysis indicates that a client has, or will have, the need for various types of lending services within a particular time period.
ADVANTAGES OF FRAME LOANS
- Fast loan approval
- Reduced costs – collateral is registered only once