Yes, you can apply for a loan with a Safe Keeping Receipt (SKR) from Prominence Bank. The SKR acts as valuable collateral, making it easier to secure a loan.
Here’s what to expect:
• Distinct Services: We emphasize that asset custody and loan provision are separate services. You’ll need to secure custody of your assets before we can proceed with a loan.
• Performance Bond Insurance Policy: We strongly recommend obtaining a performance bond insurance policy, as it significantly increases the chances of loan approval. This policy, combined with your SKR and “Full Bank Responsibility,” is widely accepted as collateral by financial institutions.
• Loan Approval: While the SKR is important, the final decision on loan approval rests with Prominence Bank’s Credit Department. The SKR agreement itself does not guarantee loan approval.
Outlined Loan Procedure:
1. Open a Custodian Account: This account is for holding your assets.
2. Deposit Assets: You will need to deposit your assets with the bank.
3. Asset Evaluation: An approved bank appraiser will assess the value of your assets.
4. Loan-to-Value (LTV) Ratio: This ratio determines the maximum loan amount based on your asset value. It ranges from 20% to 65%.
5. Performance Bond Insurance Policy: After your asset evaluation and pre-approval are complete, we’ll request a performance bond insurance policy.
6. Loan Disbursement: Once all necessary steps are taken, your loan will be disbursed within 72 banking hours.
Important Notes:
• Asset Valuation: The higher the valuation of your assets, the better your chances of loan approval and the more favorable the loan terms.
• Costs: All costs associated with this process (custodian account, insurance, appraisal, etc.) are your responsibility.
Cost Breakdown:
• Custodian Account: €25,000 upon application, plus 2% of the SKR face value (due within six months or at loan disbursement).
• Asset Deposit: No cost involved.
• Asset Appraisal: Costs are coordinated directly with the appraiser.
• Loan Application: No associated charges.
• Performance Bond Insurance: 0.05% to 2% of the insurance value (recommended from Lloyd’s of London).
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