Apply For Industrial Projects Loans : Oman Development Bank

Name of the Organization : Oman Development Bank
Type of Facility : Apply For Industrial Projects Loans
Country : Oman

Official Website : http://www.odb.com.om/

Apply For Industrial Projects Loans :

This sector is considered as one of the promising sectors in the sultanate and a vital source of national income diversification, ODB is working towards helping the Country’s development through granting loans for financing various projects falling within the scope of this sector.

Related : Oman Development Bank Apply For Medical Institutions Loans : www.statusin.org/5493.html

Who can request this service:
Customers who are willing to finance :
Paper and Wood Manufacturing
Motor Vehicle Repair Workshops
Printing Presses
Furniture industries
Petroleum industries
Textile Industries
Chemical & Petrochemical Substances
Leather & Shoes Industries
Metal Industries
Building Construction & Mining Industries
Equipment & Machinery Industries
Any service or project within the industrial sector

Steps to follow to request the service:
A-Process steps:
Receipt of Application:
Receive Application
First Interview
Recommendation

Evaluation of Application:
Evaluation of Application
Risk Evaluation
Recommendation & Presentation Approval

Documentation & Disbursement:
Collateral Documentation
Agreements Disbursement

Follow up & Settlement:
Follow up
Repayment

B-List all forms/applications that need to be completed to apply for the service:
Initial loan application
Loan application form – up to RO 5,000
Loan Application form – above RO 5,000

Download Forms :http://www.odb.com.om/Forms.aspx

What documents are needed to process:
Copy of the permit, registration, or approval issued from the concerned authority, whether for new or existing projects.
The official documents that show the legal entity of the project.
The documents pertaining 3 quotations from contractors/suppliers of assets.
The feasibility study (Cost of Projects more than RO 100,000.

Special conditions if any applicable:
Organizations with Commercial registration in Oman

How the service is processed:
One month after the submission of documents.

Fee to be paid:
Feasibility study fees from 50 RO to 250 depends on loan amount

Places of Payment:
Head office or nearest branch in the area

FAQs :
What is the maximum loan amount for ODB?
Bank offers loans up to RO 1 million per project.

What maximum percentage of the fixed asset’s cost does ODB cover?
ODB finances a maximum 50% of total investments for projects located within Muscat Governorate , and up to 56%, if the project is located outside Muscat Governorate

How long is the repayment period?
The repayment period can go up to 10 years

Is there any grace period?
ODB offers grace period not exceeding half the period of repayment of the loan. The grace period depends on the nature of project and its expected cash flow.

Is there any payment during grace period?
Customer should pay only interest at 3% per year of outstanding amount during grace period.

Do I have to offer any collateral against the loan?
ODB has developed an Internal Credit Scoring Model for borrowers based on expected loss model to assess the lending risks using methodologies of international standards.

This model enables the bank to assess the probability of default and expected loss and to identify the kind of collaterals/ guarantees required that from borrowers in a transparent and fair manner.

What types of securities can be offered?
** Fixed Term Deposits with a bank
** Bank Guarantee
** Government Development Bonds
** Shares listed in Muscat Securities Market
** Personal/Corporate Guarantee

** Mortgage over Freehold Property
** Mortgage over Property in Leasehold land
** Joint Registration over Assets
** Commercial Mortgage on Assets
** Mortgage over Property in Industrial Estates