Introduction

It refers to that the bank gives the loan which is used for the fixed asset investment as required by the customers. The fixed asset investment activities include warehouse, office, factory, shop, purchase or construction. It also include equipment purchase etc. The tenor generally includes medium term (one to five years) and long term (up to 10 years), it mostly adopts amortization and floating interest rate.

Features

Tenor is usually long. Once the loan is drawdown, the balance would decrease by monthly, quarterly or semi-annually installment. So that the borrower shall not bear much pressure.