FREQUENTLY ASKED QUESTIONS (FAQs)
Does the Bank have a maximum loan amount that it can lend?
- Yes. The Bank shall not lend more than 10% of its paid-up capital to a single borrower. The amount requested should be appropriate to the scope of the project.
How long does it take to obtain a response to my loan application?
- Upon receipt of all requested information, you will receive a response between 30 to 45 days. All applicationsare reviewed by the Credit Review Committee and depending on the amount being requested, by the Board of Directors.
What is BDB’s interest rate?
- Currently, the Bank’s rate is a maximum of 7.25%. The Bank however, reserves the right to adjust its rate depending on several factors.
How many years are you allowed to repay the loan?
- The number of years are dependent on the scope and nature of the project. The maximum repayment term however, is 20 years.
How much down payment or equity injection is needed?
- The Bank does not provide 100% financing. A minimum injection required is based on the nature of the project. Typically, the minimum requirement is 15% of the total project cost in New Providence and Grand Bahama, and 10% in the other Family Islands.
How much collateral do I need?
- The Bank requires collateral coverage of 100% of the loan amount requested. However, additional factors determine the final amount accepted. For Family Island projects, 90% coverage is required.
If rejected, can I re-apply?
- Yes, once you address the areas of concerns communicated by the Bank.
Are there any hidden fees?
- No, there are no hidden fees. There is small Application feerequired to submit the final application for review. An Administration fee of 1.5% of the approved amount or $100 (whichever is greater) is also required. This amount is payable upon acceptance of the loan and the terms outlined.
Are there any other costs?
- Yes, legal fees for the preparation of documents (internal and/or external), Government taxes and insurance expenses. These costs can be included in the loan amount requested. Your officer will provide an estimate during your interview.
What kind of insurance coverage is required?
- You will be asked to provide both Life and Property (and Theft) coverage, and in some cases, Liability coverage based on the nature of the loan.