Procedures and Services

The Bank will grant loans up to the maximum authorized amount, for a specific purpose that contributes to the operation and development of the activity carried out by the borrower and always under the principle of recovering it on the due date from the income from the financed activity. or any other income received by the borrower or third parties.

4.3 In accordance with the specific purpose for which the loans are allocated, they will be classified as:

a) Loans for working capital: those intended to finance the current assets of productive, commercial and service entities, whose production, sale and collection cycles do not exceed eighteen months. It includes those loans that, exceptionally, are granted with repayment terms greater than that term, which will be recovered from the resources generated by the borrower for the performance of his economic activity.
b) Investment Loans:

Non-Agricultural Investments:

Those that apply to expenses associated with preinvestment studies, construction or modernization of real estate, purchase of fixed assets, expenses associated with the start-up of the project and contribution of capital stock, whose destination is the formalization of fixed assets.

Financing with these destinations may be granted to state companies, CNAs and TCP - OFGNE.

In the case of state-owned companies, those that apply to the restitution of liabilities originated by the use in investment expenses of the resources destined to current expenses or other causes are also considered. This destination may be financed in other segments, in cases approved by the Credit Committee of the Central Office.

Agricultural Investments:

Those that are destined to finance the necessary expenses for the promotion, renovation, rehabilitation or sealing of permanent crops, construction of rural works, land conditioning and soil improvement.

The acquisition and exploitation of cattle and other types of livestock, as well as other agricultural activities authorized by the corresponding management of the Bandec Central Office are also considered as agricultural investments.

Financing with these destinations may be granted to state companies in the agricultural sector, cooperative agricultural sector and farmers.

4.4 Considering the term of their use, the loans will be classified into:

a) Short-term loans: those whose use is up to twelve months (one year).
b) Medium-term loans: those whose use exceeds twelve months (one year) and up to 5 years.
c) Long-term loans: those whose use exceeds 5 years.

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