Other Terms and Conditions

1)

The bank reserves the rights to revise / amend / modify the rates of mark-up commission or any other conditions of the liabilities within the period so decided by the Bank. assigning any reason and to call for adjustment of the liabilities within the period decided by the bank.

2) The bank shall have full authority to cancel the facilities allowed without

3) The facilities granted are subject to SBPs Prudential regulations. 4) The hypothecationed goods, building and machinery must be insured at all

times against the risk of fire, riots, strike, burglary, malicious damage risks withthe bank as the mortgage and yourself as a mortgager, and the relevent policy held by us. market value. The insurance policy will be made in the joint name of the company and the bank. The relevent insurance policy will be held by the bank along with the premium payment receipt. end of each month to reach us by the first week of the following month. any case atleast once in the calendar year.

5) Assets hypothecated to the bank will have to be insured at all times for full

6) Stock statements together with a list of book debts are to be submitted at the 7) The bank would undertake the inspection of stocks from time to time and in 8) SBP has imposed Prudential regulations on all the banks. These facilities are

being offered withthe understanding that your companys financial condition will comply with these regulations. from the date of your financial year end.

9) Audited accounts should be submitted to the bank within six months of date 10) All levies and taxes now or at any time hereafter levied and payable in respect

of the financial accommodation and banking facilities set out in this letter will be exclusively borne by you. authorised persons.

11) All requisites charge forms to be submitted duly filled in and signed by the 12) For any change in any ownership, prior permission of bank shall be obtained

otherwise existing owners shall also continue to be liable.

13) In normal banking practice the facility is repayable on demand and we reserve

to ourselves the right to vary the terms and condition or ask for repayment if circumstances arrive which in our opinion justify our doing so.

Types of Advances
MCB provides advances, which are of two types. These are as following:

Fund Based Advances Non Fund Based Advances

1. Fund Based Advances

Funds are given to customer according to their requirement against securities. These loan are given specially to traders, business, small industrial units, including cottage industries, agriculturists, thus ensuring an equitable distribution of bank credit among various sectors of the countrys economy. There are following types of advances, which are given to customer on fund basis.
1)

Industrial loan

2) Commercial loan 3) Agricultural loan

Industrial Loan
Loans are given to industrial units including cottage industries up to or less than RS. 20 million. Loans and advances shall not exceed amount specified by marginal restriction on the type of securities offered. Industrial loans are granted to the manufacturing section of the economy including finance for fixed investments and working capital requirements of small industries. Loan Period Loans are allowed for a maximum period of 5 years including a maximum grace period of 1 year. In special case up to 10 years also, depending upon the merit of the case.

Commercial Loan
Total principal amount of loans to a single enterprise/borrower shall not exceed RS. 0.5 million. Maximum maturity is 3 years, depending upon the nature and type of advances, decided upon case to case basis. Mark-up Both for commercial and industrial loan, mark-up will be charges as per existing rate, subject to changes from time to time. Presently it is 0.51 RS per day per RS. 1000/-. Mode of Repayment Equal monthly, quarterly or half-yearly, repayment of principal and interest or as per term of approval. Securities and Margin
Loans can be made against any or more of the following securities mortgages of immovable property (land and building), pledge of stocks, raw materials, and finished goods, hypothecation of stocks, raw material, and finished goods, State bank of Pakistan guarantee.