Insurance Premium Financing is a product where FDH Bank provides financing to Customers to spread their insurance premiums over a period of up to 10 months. It provides a delayed payout or disbursement through which the full premium is only paid to the insurance broker or company after 30, 60 or 90 days or as per agreement. This facility is available to (Private) Limited Companies, Registered Partnerships, Farmers and any other recognized forms of organizations.
IPF Eligible Premiums
All premiums which are renewable annually are eligible for this financing option. However, the following premiums are ineligible:
- Life Assurance Premiums.
- Policies, which do not provide a rebate on cancellation.
- Premium adjustment for previous periods.
- Short period policies Performance Bonds.
The Features of Leasing/Loan Arrangements
- Loans of MK500, 000 and more.
- Repayment periods range from 3 to 60 months; but will not exceed the useful life of the asset being financed.
- A deposit/down-payment of between 10% and 25% is required.
- Interest rates are linked to the bank prime lending rate.
- All goods must be comprehensively insured during the period of the contract.
The Benefits of Leasing/Loan Arrangements
- Customers are able to purchase expensive assets without having to save the full purchase amount first.
- Customers get the benefit of any resale value if you take ownership.
- The size of the deposit and the repayment period can be structured to suit your needs and cash flow.
- Structured payment plans can be arranged to support the cash flow.
- The interest paid (finance charges) each year, may be tax deductible.