Can I apply for a loan with a Safe Keeping Receipt (SKR)?

Prominence Bank – Loan Application with Safe Keeping Receipt (SKR)

Yes, you may apply for a loan using a Safe Keeping Receipt (SKR) issued by Prominence Bank. An SKR serves as valuable collateral, enhancing the likelihood of securing financing.

Key Considerations:

• Separate Services: Asset custody and loan provision are distinct services. Custody of your assets must be established before the loan application process can proceed.

• Performance Bond Insurance Policy: We strongly recommend obtaining a performance bond insurance policy, as it substantially improves loan approval prospects. When combined with your SKR and “Full Bank Responsibility,” this collateral is widely recognized by financial institutions.

• Loan Approval: The presence of an SKR is an important factor; however, final approval is determined by Prominence Bank’s Credit Department. The SKR agreement does not in itself guarantee loan approval.

Loan Procedure:

1. Open a Custodian Account: This account will hold your pledged assets.

2. Deposit Assets: Assets must be deposited with the bank.

3. Asset Evaluation: An approved bank appraiser will assess the market value of your assets.

4. Loan-to-Value (LTV) Ratio: Based on asset valuation, loan amounts typically range between 20% and 65% of appraised value.

5. Performance Bond Insurance Policy: Following asset evaluation and pre-approval, a performance bond insurance policy will be required.

6. Loan Disbursement: Once all conditions are met, loan funds will be disbursed within 72 business hours.

Important Notes:

• Asset Valuation Impact: Higher asset valuations improve loan approval chances and allow for more favorable terms.

• Client Responsibility for Costs: All expenses related to custody, insurance, appraisal, and related services are the responsibility of the applicant.

Cost Structure:

• Custodian Account: €25,000 upon application, plus 2% of the SKR face value (payable within six months or at loan disbursement).

• Asset Deposit: No charge.

• Asset Appraisal: Fees payable directly to the approved appraiser.

• Loan Application: No application fee.

• Performance Bond Insurance: Typically 0.05% to 2% of the insured value (recommended providers include Lloyd’s of London).