• Personal Loan BYTES FROM OUR KITCHEN

    ICBC Loan Financing

    Overview of Loan Financing

    Different banks offer different types of loans to their customers according to specific needs and demands that trend in the financial market. It is a way of extending money one party to another with a mutual agreement that the amount borrowed will be repaid. Loan financing often have maturity dates where the amount has to be repaid within a specific period of time which is mutually agreed upon and communicated before the loan is finalized. They also have fixed interest rates, wherein the borrower not only has to repay the principal amount borrowed, but also a certain compensation amount for borrowing the money. Strictly speaking, the trend today with many SMEs being established and booming, banks are now providing specific loan financing options depending on the nature of the business enterprise and also the operational strength of the applicant. It is no longer the need of the hour to opt for a Personal Loan when you have business specific loans that are better suited for your financial endeavours. Although, the ICBC Personal Loan is one of the popular options with attractive interest rates, Each of these loan financing options provided by ICBC are tailored to meet the requirements of the specific business category which can help the customer to a large extent.

    Overview of ICBC Bank and Loan Financing Offered

    The Industrial and Commercial Bank of China Limited is the largest bank in the world in terms of the total assets and market capitalization. It is a part of the “Big Four” state owned commercial banks in China. With an excellent customer base and a diverse business structure, the bank operates in 6 different continents with a large network expanded over 41 countries and regions. The bank has expanded its bandwidth to provide financial products to both, the corporate as well as personal customers. They have over 2000 correspondent banks worldwide and provides the latest and advanced e-banking network and phone banking services to its customers. It is the first Chinese bank to achieve such high number of assets. ICBC offers Loan Financing in various different business enterprises such as Working Capital Loan, Vessel Financing, Syndicated Loan etc. You can choose from an array of Loan Financing options that cater to your specific needs and requirements. You can avail from syndicated or bilateral financing options for your special projects or simply your daily operational needs.

    Loan Financing Options provided by ICBC Bank

    • Overdraft
    • The overdraft facility provides you direct access to your funds for your short term requirements. If you do not have sufficient funds to cover your expenses, you always have the option to use the overdraft facility for easy access to money. You can borrow up to the limit that is placed on your account.

    • Working Capital Loan
    • The working capital loan can be availed when you want to meet your day to day finding requirements ensuring the normal production of your business activities. ICBC offers the Working Capital Loan on a revolving basis where you can make multiple withdrawals and repay them. This is however subject to the loan tenure and the limit that has been set on your loan.

    • Syndicated Loan
    • A syndicated loan is provided by a syndicated group comprising of multiple qualifying banks or other financial institutions provided to the same borrower. The loan conditions remain the same and are agreed upon by the involved parties. ICBC could be the participating bank or the mandated lead arranger.

    • Vessel Financing
      1. Vessel Mortgage Financing
      2. Under this financing, the loan is provided to the owner of the ship where the ship will be mortgaged to the bank. The ship must have been launched with clear property rights with no occurrence or mortgage of a default event. It should have all the operating licenses, should have successfully completed all the tests and should be in compliance of all airworthiness requirements, insurance underwriting requirements and ICBC bank should be listed as the main beneficiary in the insurance.

      3. Financial Leasing Financing
      4. Under this type of financing, the ship is selected by the lessee but is purchased by the lessor. The lessor will have the ownership of the ship and will rent it out to the lessee for a specific period of time. On expiration of the lease contract, the ownership of the ship will be transferred to the lessee. This is financial tool that involves the lease of both, money as well as the property or object. ICBC bank can provide the loan to the lessor for the purchase of the ship where the ship will be mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

      5. Operating Lease Financing
      6. Under this lease, the lessor will rent the ship to the lessee but will take all responsibility for the maintenance of the ship and will receive a rental fee from the lessee. On expiration of the lease, the lessee can either extend the contract, buy the ship from the lessor or can even return the ship back to the lessor. ICBC bank can provide the loan to the lessor for the purchase of the ship where the ship will be mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

      7. Lease Back Financing
      8. Under this type of financing, the company or ship owner can sell their ship to a leasing company or a third party in order to improve the financial condition and relieve themselves of the burden of making tax payments. ICBC bank can arrange the selling as well as the leasing back and in addition, also offer financing services to the parties involved.

    • Aircraft Financing
      1. Pre-delivery Financing
      2. Letter of guarantee or loans for the payment can be availed by the aircraft company if they require a portion of the money to make the full payment.

      3. Aircraft Mortgage Financing
      4. Long term loans can be availed by airlines with 30% - 40% deposit rate by mortgaging the aircraft to the bank. The aircraft must have been mortgaged with clear property rights. The aircraft must have no mortgage or occurrence of any event of default. The aircraft must have all the operating licenses and must have completed all the tests in accordance with all insurance underwriting requirements and airworthiness requirements and the bank listed as the main beneficiary in the insurance.

      5. Financial Leasing Financing
      6. Under this type of financing, the lessor holds the ownership of the aircraft but transfers the profit and risk to the airline company. This financial tool allows the leasing of both, money and the object. ICBC can provide the loan to the lessor for the purchase of the aircraft and when the aircraft is mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

      7. Operating Lease Financing
      8. Under this type of financing, the lessor assumes responsibility of the maintenance of the aircraft and rents the aircraft to the lessee through which he receives a rental fee. After the expiration of the lease, the lessee could further extend the contract, purchase the aircraft from the lessor or even return the aircraft back to the lessor. ICBC can provide the loan to the lessor for the purchase of the aircraft when the aircraft is mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

      9. Lease Back Financing
      10. The aircraft company or the owner can sell their aircraft to a leasing company or third parties to improve the financial situation or to reduce the burden of making tax payments. ICBC Bank Branch can aid in both, selling of the aircraft as well as the leasing back and additionally, also offer financial services which will include the following – purchasing financing, off balance financing and refinancing.

      11. Leasing guarantee and counter guarantee
      12. ICBC can provide guarantee in the following ways – opening bank guarantee, Revolving LC, Standby LC for the applicant. Additionally, ICBC can also provide counter guarantee to banks who have already offered this type of guarantee to their customers when their credit was not acceptable to the lessor.

    • Project Loan
    • ICBC grants Project Loans to borrowers for investment projects that may include expansion, renovation, purchase of fixed assets, building up etc. These loans have flexible loan terms. Short term loans are provided for temporary turnaround requirements. The bank also provides middle and long term loans. You can avail multiple loan combinations under this facility. The bank also offers these loans on the basis of the customer’s requirements such as issuing bank acceptances under the projects and non-financing guarantees, also conducting domestic and overseas trade financing services.

    • Real Estate Development Plan
    • This loan is granted to borrowers for projects related to real estate and corresponding facility constructions.

    • ICBC Singapore Credit Facilities
    • You may avail credit facilities from ICBC Singapore if you have a standby letter from ICBC of credit from any ICBC China Bank Branches.

    • ICBC China Credit Facilities
    • You may avail credit facilities from ICBC China if you have a standby letter from ICBC of credit from any ICBC Singapore Bank Branches.

    • IFS Scheme
    •  Internationalisation Finance Scheme or IFS is a scheme is that is supported by the Singapore govt. wherein financial institutions are encouraged through risk participation to meet their financial requirements, be it local corporates or multinational companies with regional headquarters based in Singapore for the development of their overseas business.

      ICBC Bank Singapore is the 1st Chinese Bank to get admitted into the IFS.

      The different types of financing products provided include the following –

      1. Asset Backed Loans - These loans can be availed for overseas investments in land, factories, construction and other fixed assets.
      2. Structured Loans – These loans and trade finance can be availed against confirmed order or sales or even secured projects.
      3. Banker’s Guarantee – Includes Performance Bond, Advance payment guarantee etc.

    ICBC Loan Financing - FAQs

    1. What do you mean by a Syndicated Loan?
    2. A syndicated loan is provided by a syndicated group that consists of multiple qualifying banks or other financial institutions but the loan is provided to the same borrower. The loan conditions remain the same and are agreed upon by all the involved parties. ICBC can be the participating bank or the mandated lead arranger under this arrangement.

    3. What is financial leasing financing under Vessel Financing?
    4. Financial leasing financing is where the lessor will hold the ownership of the aircraft but transfers the profit and risk to the airline company. This is a financial tool that allows the leasing of money as well as the object. ICBC can provide the loan to the lessor for purchasing the aircraft, when the aircraft is mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

    5. What is operational lease financing under Aircraft Financing?
    6. As per the operational lease financing, the lessor will assume responsibility for the maintenance of the aircraft and will rent the aircraft to the lessee through which he will receive a rental fee. After the expiration of the lease, the lessee can further extend the contract, purchase the aircraft from the lessor or return the aircraft back to the lessor. ICBC can provide the loan to the lessor for purchasing the aircraft when the aircraft is mortgaged and the benefits of the lease, insurance and the ship itself will be assigned.

    7. What is leasing guarantee and counter guarantee under Aircraft Financing?
    8. ICBC provides certain guarantees that include – opening bank guarantee, Revolving LC, Standby LC for the applicant. Additionally, ICBC also provides counter guarantee to banks who have already offered this type of guarantee to their customers when their credit was not acceptable to the lessor.

    9. What is a Project Loan?
    10. ICBC provides Project Loans to borrowers for their investment projects such as expansion, renovation, purchase of fixed assets, building up etc. These loans have flexible loan terms. Short term loans are provided for temporary turnaround requirements. Additionally, the bank also grants middle and long term loans.

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