03 September 2015
MUSCAT: Oman Development Bank (ODB), the Sultanate's state-owned specialised bank for funding small and medium enterprises, plans to extend its funding to more sectors including logistics.
Further, the bank is also mulling introduction of new products as well such as leasing, said the bank's corporate branch manager Eng. Ahmed Khalifa Al Hajri.
Presently, the bank covers several sectors including tourism, industries, education, healthcare, agriculture and livestock, fisheries, information technology, consultancies and workshops.
Last year, ODB's gross loans portfolio touched OMR116.61 million, and the industrial sector made up the major share of the loans portfolio at 26 per cent.
With 18 branches and 250 committed employees, the bank has been able to fulfill its duties as a crucial facilitator in the development sector, Eng Ahmed Khalifa said in his presentation.
ODB offers working capital loan up to OMR1 million at attractive interest rate to SMEs that do not have access to such facilities from commercial institutions due to lack of relevant information. The loan tenure is up to 180 days. The ODB has been nurturing the small and medium enterprises sector in the Sultanate with its expertise in industrial finance, the bank officials said, while addressing a seminar.
Major products offered by the bank include term loan, fixed deposit, and working capital finance. Customers can avail term loan up to OMR1 million at a fixed rate of 3 per cent per annum, and tenure of up to ten years. Also, there is a repayment holiday of up to five years. ODB loans cover up to 56 per cent of the project cost. ODB term loans are processed in a very short time, and an advanced software has been installed to speed up review process.
The Izdihar Fixed Deposit scheme is designed as a safe avenue for parking surplus funds, and offers attractive interest rates. The bank has been a strong partner in enhancing local production and in-country value.
The bank helps SMEs by engaging local auditing consultancies to coach and develop such SMEs to prepare their own financials. The entire consultancy costs are borne by ODB for the first year. However, it's mandatory for SMEs to submit financial statements to avail working capital loans.
The range of working capital loans includes loan against trust receipt, bill discounting facility, export bill discounting, pre-shipment finance and seasonal loans. As much as 85 per cent of working capital loans issued by ODB went to the industrial sector.
ODB uses internal credit scoring model, and adopts uniform mode of risk assessment. Moreover, empanelled consultants have been appointed to speed up documentation. The bank has helped several local brands to grow to their full potential and become major business firms, added Eng Ahmed Khalifa.
The bank as conducted a seminar introducing its range of products and services designed to finance development projects in the Sultanate joining hands with the Public Establishment for Industrial Estates at Knowledge Oasis, Muscat. Entrepreneurs, business leaders and officials from various industrial sectors attended the seminar.
MUSCAT: Oman Development Bank (ODB), the Sultanate's state-owned specialised bank for funding small and medium enterprises, plans to extend its funding to more sectors including logistics.
Further, the bank is also mulling introduction of new products as well such as leasing, said the bank's corporate branch manager Eng. Ahmed Khalifa Al Hajri.
Presently, the bank covers several sectors including tourism, industries, education, healthcare, agriculture and livestock, fisheries, information technology, consultancies and workshops.
Last year, ODB's gross loans portfolio touched OMR116.61 million, and the industrial sector made up the major share of the loans portfolio at 26 per cent.
With 18 branches and 250 committed employees, the bank has been able to fulfill its duties as a crucial facilitator in the development sector, Eng Ahmed Khalifa said in his presentation.
ODB offers working capital loan up to OMR1 million at attractive interest rate to SMEs that do not have access to such facilities from commercial institutions due to lack of relevant information. The loan tenure is up to 180 days. The ODB has been nurturing the small and medium enterprises sector in the Sultanate with its expertise in industrial finance, the bank officials said, while addressing a seminar.
Major products offered by the bank include term loan, fixed deposit, and working capital finance. Customers can avail term loan up to OMR1 million at a fixed rate of 3 per cent per annum, and tenure of up to ten years. Also, there is a repayment holiday of up to five years. ODB loans cover up to 56 per cent of the project cost. ODB term loans are processed in a very short time, and an advanced software has been installed to speed up review process.
The Izdihar Fixed Deposit scheme is designed as a safe avenue for parking surplus funds, and offers attractive interest rates. The bank has been a strong partner in enhancing local production and in-country value.
The bank helps SMEs by engaging local auditing consultancies to coach and develop such SMEs to prepare their own financials. The entire consultancy costs are borne by ODB for the first year. However, it's mandatory for SMEs to submit financial statements to avail working capital loans.
The range of working capital loans includes loan against trust receipt, bill discounting facility, export bill discounting, pre-shipment finance and seasonal loans. As much as 85 per cent of working capital loans issued by ODB went to the industrial sector.
ODB uses internal credit scoring model, and adopts uniform mode of risk assessment. Moreover, empanelled consultants have been appointed to speed up documentation. The bank has helped several local brands to grow to their full potential and become major business firms, added Eng Ahmed Khalifa.
The bank as conducted a seminar introducing its range of products and services designed to finance development projects in the Sultanate joining hands with the Public Establishment for Industrial Estates at Knowledge Oasis, Muscat. Entrepreneurs, business leaders and officials from various industrial sectors attended the seminar.
© Times of Oman 2015
