Fund to be on lent at 4%

Fund to be on lent at 4%

Attention: open in a new window. Print

GENERAL OBJECTIVES FOR ON­LENDING THE GOVERNMENT DEVELOPMENT LOANS AT 4% INTEREST

  1. Pursuant to article 5, the Government shall provide to the TDB funds of up to T$9,500,000 to be on‐lent to customers and the public at 4% interest.
  2. The TDB shall on‐lend funds at 4% interest, to facilitate the general objectives outlined below and specific objectives in Annex 4.
  3. All funds on‐lent under the categories below must be repaid by the Borrower to the TDB within the periods stipulated.
  4. In the event that a Borrower defaults in the repayment of his loan -
    1. the usual default notification and loan recovery processes of the TDB will apply; and
    2. if required, the TDB shall pursue legal proceedings to recover the loan amount due.
  5. Subject to Annex 6.2(e), where the Borrower does not settle his full loan amount at the end of the TDB's loan recovery process, the Borrower will not qualify for any future loans under the Agreement.
  6. While servicing an existing loan, a Borrower may apply for an additional loan under this Agreement provided that after due consideration, the TDB has assessed that:
    1. the Borrower is up to date with all current loan repayment;  and
    2. the Borrower will have the ability to service the new loan as well as maintain repayments for he existing loan.
  7. The TDB shall apply the maximum loan ceilings outlined in the table below in respect of each Fund.
Funds General Objectives Repayment Period Max Loan
Agriculture Development Fund
  1. As a matter of priority, to boost exporter’s confidence by providing a facility to allow the early payment to primary producers for their exports
  2. Investment in expanded agricultural production and value added activities.
Repaid within 2 years T$200k.
Fisheries Development Fund
  1. Assist fishermen, vessel owner and exporters to generate increased exports, income and employment in the fisheries sector
 Repaid within 3.5 years T$200k
Tourism Loan Fund
  1. To promote the development of new tourism products and event.
  2. To improve the quality of small‐medium accommodations
  3. To develop a clean and beautiful tourist environment
  4. To support and encourage community participation in development of heritage sites and cultural events
  5. To support coordination within the tourism sector
 Repaid within 3 years T$100k
Manufacturing Loan Fund
  1. To promote the development of competitive and value added products
  2. To stimulate innovation and product diversification
  3. To support production and marketing capacity of export ready manufacturers
  4. To promote and encourage cooperation and coordination in manufacturing sector
Repaid within 2 years  T$50k
Livestock Development Fund
  1. To support livestock projects with economic benefits which might also benefit the community and aims at improving living conditions in rural areas.
Repaid within 2 years T$50k
Forestry Development   Fund
  1. To support forestry investment with economic benefits which might also benefit the community and aims at improving living conditions in rural areas
  2. To support nurseries specifically for sandalwood seedlings production and other seedlings such as fruit trees, vegetable seedlings etc.
Repaid within 2 years T$50k
Construction and Utilities Loan Fund
  1. To support and cater for investments that require capital equipment, tools and safety gear.
  2. To provide capacity building and training in specialized fields.
  3. To assist and encourage local contractors who are bidding for development projects.
  4. To assist local communities with their community utility requirements
Repaid within 2 years
  1. T$50k
  2. T$10k
Retail and Wholesale Loan Fund
  1. To support small medium enterprises in the retail and wholesale business with expansion and service development.
Repaid within 2 years T$50k
Micro finance loans for women

To support other financially viable investment currently not provided for in the current fund allocation and in particular the disbursement of loans to income generating groups, including women's groups with financially viable microfinance projects.

Repaid within 1 year T$6k
Overseas Medical Cover

To support  taking patients overseas for medical purposes

Repaid within 2 years on a semiannual basis T$20k
Education Loan Fund
  1. For the purposes of promoting and enhancing the academic and professional skills of Tongans, to assist students who need to further their studies abroad or in local accredited institutions but cannot afford the costs, from Certificate level and upwards.
  2. To support qualifications from a Tonga National Qualifications and Accreditation Board (TNQAB) accredited institution at the Certificate level and above.
Repaid within 4 years T$50k

 

Quicklinks

Tonga's Bank