Direct Loans

Lending has been the principal tool used by the Bank in support of the members´ economic development, and it continues to be the Bank´s main activity. You may apply for a direct loan to start up a new business or expand your existing business. Following are the specific general information about our direct loans.

Loans are allocated to businesses in the member countries based on the amount of equity capital contributed. For example, Yap, who has already paid its full $1 million in capital to the bank may receive loans up to $1 million.

Minimum Loan Amount: $20,000

Maximum Loan Amount: Not to exceed 20% of total assets; and depends on funds available to each member country (capital contributed less outstanding loan balances)

Interest Rate: 10% fixed

Loan Term: Up to 20 years

Collateral Required: Assets with value equal to or more than loan amount

Loan Fee: 1.5% of loan amount payable at loan closing

Other Fees: Borrower will be responsible for fees associated with escrow closing services