- Overdraft Account
An overdraft account with the limit can be granted to cover a short-term needs of capital. Most banks are expecting customers to have a good turnover of their account, not to be inactive, and if cheque book is also granted, the issued cheques to be honored because then the issuer can be listed into the Central Information Register for the Issuers of Dishonoured Cheques (CIR) which implies legal consequences for the issuer. This account may be subject (according to each bank’s pricing policy) to annual revision fees and maintenance fees, and overdraft excess fees, returned cheques fees when applicable. If the account is provided without limit then the account is called “CURRENT ACCOUNT” and it has the same functions as the overdraft account, but with the difference that the available amount for withdrawal is from the client’s deposits (own funds).
- Housing Loans
For housing loans, the cost can vary because of the loan amount, the currency, the duration, the type of securities offered, and other factors in each case. The securities can be a mortgage of the financed property, a letter of guarantee from the developer, personal guarantees, assigned life insurance, assigned fire insurance, with the possibility to add more securities at the discretion of the bank when is considered necessary. The Housing Loans costs, depends on each financial institution pricing policy, f.e interest rate, approving costs, valuation costs, preparation of documents e.t.c, and costs not levied from the financing bank f.e Land Registry Fees for the transfer of the property to the new owner, mortgage fees, stamps, etc. Early repayment or settlement fees can be charged according to the legislation and the loan agreement.
- Personal Loans
Personal Loans can be granted to cover short or long-term needs of financing f.e consuming products such as cars, furniture, equipment. e.t.c Interest paid to the bank depends on the amount of loan, duration, type of security (tangible or intangible security), and other factors in each case. Related costs can be the approval expenses and government stamps, depending on the case.
- Business Loans
Business loans usually can be granted for covering short or long-term needs of the capital of a company. Many banks usually have standard products for these products and tailor suit loans are mostly to corporate clients.
- Letters of Guaranty
There is a variety of these products covering sundry issues that need to issue and deposit of bank guarantee. When the Letter of Guarantee (L.G) is issued as security of housing loan, the bank can charge a fixed rate on the amount of guarantee that can be paid either from the seller or the buyer according to the terms of their agreement. In addition stamps to the government shall be paid.
- On demand deposits
On-demand deposits can be placed in a current account or savings account. Money is available at any time without notice. These types of deposits pay or do not credit interest. The main difference between current and savings accounts is that a client with a current account can be a holder of a cheque book if requested. These accounts can be subject to maintenance fees, cheque book costs, and in some cases, there are charges upon deposits or withdrawal depending on the financial institution pricing policy.
- Short Term Notice Deposits
At this category of accounts, a notice before money withdrawal should be given to the bank f.e 7days, 1month, 3months,6months notice according to the initial agreement. Maintenance cost is charged depending on the financial’s institution pricing policy.
- Fixed Deposits
Fixed Deposits with fixed interest at maturity, are not available for withdrawal until the date of maturity. The date of maturity can vary depending on the initial agreement (one month, three, six, or twelve months). The relation between interest rate and duration on the market conditions. In case of withdrawal on demand, banks according to their pricing policy can charge penalties on capital and on interest.
NOTE: The description of the above products is general in order to categorize some bank products in brief and does not cover all banking products available. Each credit institution’s products and policies can be differentiated and for precise information, you can visit the bank’s websites.