Business

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The classification of this involves the mechanical or chemical transformation of inorganic or organic substances into new products.

Lending to this industry has predominantly focused on the following;

It should be noted that the Bank’s lending in this industry has been in the main directed towards the processing of imported raw materials for export

Tonga Development Bank's Manufacturing loan has:

A maximum term of 15 years
Available for the acquisition of plant and equipment to facilitate the manufacturing process
Minimum contribution of just 25% of total project cost

From
10.00% pa
interest rate

Manufacturing
Rates
CRR A	10.00% pa
CRR B	11.00% pa
CRR C	12.00% pa
Features
Security	All items purchased with loans funds. The security coverage should be BSV 1.5x with no mortgage or 1.0x with mortgage.
Term	Maximum of 15 years, but actual term will depend on project and repayment schedules.
Repayments	Depends on the amount of loan and the proposed annual cash flow of the project.
Fees	Can be charged to account.
Disbursement	Direct to supplier where necessary or according to agreed draw down schedule.
Borrowers Contribution	Minimum of 25% of total project cost.

Eligibility Guideline – Applicants

Applicants considered under this Sector should be:

Be involved in an existing manufacturing operation;
Be involved in any other business which has proven to be successful and the project proponents have proven management capabilities.
Possess a specialized skill, which is pivotal in a manufacturing industry.

Eligibility Guideline – Purpose

This loan may be used for: