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Long Term Finance

Long Term Finance
Long-term loans are used to finance Equipment, Real Estate and other Fixed Assets having validity of more than one year. The forms of long-term loan are given below:

1. Hire Purchase
This is given to procure machinery/equipment/vehicle. Ownership of the assets to be purchased under the Hire-Purchase agreement covering comprehensive risks belongs to both the Banker and the customer. Hire-Purchase facility is repayable by depositing equal monthly/quarterly installments (including principal and interest amount).
2. Lease Financing
Under lease financing Modhumoti Bank covers Machinery/equipment/vehicle financing. It is a term financing repayable through lease rental in the form of equal monthly/quarterly installments. Ownership of the leased out assets i.e. Machinery/equipment/vehicle under the lease agreement covering comprehensive risks belongs to the Bank.
3. Loan General/Term Loan
This facility is used to meet the expenditure of civil construction and other infrastructure related cost, local procurement, etc. Loan (Gen) facility is repayable by depositing equal monthly installments.
4. Term Loan for NBFIs
Term Loan for NBFIs is provided to enable their financing activities to others. It is given as per instruction of Bangladesh Bank circulars and at a lower interest rate based on some grading of the NBFIs.