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A loan application document was as follows:
- Estimated Total Investment: 3,500 millions VND (interest during grace period included)
- Owners equity accounts for 40% Estimated Total Investment.
The expected construction period is 6 months, starting on March 2nd
The first disbursement was on April 2nd , 2015 with the amount of 1000 millions.
The second disbursement was on May 2nd, 2015 with the amount of 200 millions
The last disbursement was made 1 month before the end of construction period.
Annual source of repayment:
- Annual profit: 750 millions VND
- Annual Depreciation Rate: 20% (enterprise A commits to use 75% of the depreciation fund of the project to pay banks loan
- Other sources: 100 millions/year
- Bank agreed to lend at the interest rate of 12%/year
- Loan Repayment Frequency: 3 months
- Prepayment fees: 3%/year
- Overdue interest rate :150% prime rate. Overdue rate for delayed interest 8%/year.
1. Calculate Lending period
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