Supply Chain Credit Line

Service condition

Suppliers requirements
Supplier fee	1% per revenue stream/ incoming transaction
Loan Term	The maximum amount contract tern for Bank's partnership with suppliers is 24months
Other conditions	Income from approved buyers using the credit line will be accepted only

Buyers requirements
Credit line amount	Up to MNT 100.0million
Loan Terms	12 months
Interest rate (monthly)	2.00 %
Grace period	Up to 45days
Payment due date	Fifteenth on every month
Mandatory payment	20% of the total credit line utilized
Collateral	Up to MNT 50 million can be secured by the inventory or account income For amounts over MNT 50 million, additional real estate collateral is required
Others	Purchases must be made from a single supplier organization

Requirement

For Suppliers:

Must be a legal entity registered in Mongolia with a reputable market position and operate as a productive and profitable supplier or trading business.
Must have been in stable business operation for at least two years.
Must have been profitable for the past two years, with no overdue loans or non-performing credit history with other banks or non-bank financial institutions.
Must have an account with the bank, with all sales income transferred to this account and receivables collected through it.
If the supplier provides imported goods, information on the country of manufacture and the supplier company must be provided. Exporting companies should not appear on international sanction lists
Must meet other requirements imposed by the bank.

For Buyers:

Must have been in partnership with the supplier for at least one year.
Must be listed as a buyer recommended by the supplier.
Must have no overdue or non-performing credit history with other banks or non-bank financial institutions.
Sales income must be processed through the bank account.

Required document

For suppliers

For Buyers

For Individuals:

Organizations:

Loan application (Form 069)
State registration certificate, company charter (notarized)
Board resolution authorizing the loan and collateral /if no Board, shareholder resolution required Verified bank account statements for the past year
Business activity photos to confirm operations

Recommendations

A loan product designed to finance working capital by secured of business receivables.

Credit and credit line products for suppliers of Oyu Tolgoi LLC.

It is a loan to be paid on future income that is regulated by a supply contract between a government orgazination or private entity and the borrower.