Credit Products

Cavmont Bank offers financing that will satisfy customers’ needs. What could be more convenient than getting what customers want, where and when they want it. The Bank offers the following credit products:

Personal Loans

A personal loan runs for a maximum tenor of thirty six months and may be unsecured. Beyond thirty six months and up to sixty months the loan should be secured. The loan carries a fixed monthly repayment amount and installments can be paid by debit order. Minimum and maximum loan amounts are considered in relation to income, needs, creditworthiness and the purpose for which the loan is required.
Interest rate will be determined by the risk profile of the customer.

Business loans

Business loans are offered with a maximum tenor of sixty months and fixed repayment installments are applicable. The maximum amount depends on the creditworthiness of the borrower and the ability to pay.
Interest rate will be determined by the risk profile of the customer.

Overdraft Facility

The overdraft is an advance made available on a cheque account in order to satisfy customers’ short term financing needs. The facility runs for a maximum tenor of twelve months and has no fixed repayment amounts and on expiry the customer may request for an extension or renewal for another twelve months. However, the Bank reserves the right to approve or decline the request for renewal. Interest rate will be determined by the risk profile of the customer. The overdraft facility is repayable on demand.

Cheque Guarantee

With a Cheque guarantee the bank guarantees payment of the specific cheque for a maximum amount and period.

Salary Advance Account

The Salary Advance Account is designed for easy payment of salaries with no monthly charges and provides for salary advances to employees of the customers which is usually 25% of the employees’ net income. Minimum equity for the organisation is KR1.5 million with a minimum salary of KR800 for the employee to qualify.

Corporate Loan Scheme

Corporate Loan Scheme is available to staff of approved institutions. The Bank can advance loans to qualifying staff members with maximum repayment installment of 40% of net salary per month.

Invoice Discounting Facility

The product operates on the basis of financing a customer’s specific order(s). The customer has to sign a Blanket Payment Assignment, upon which payment will be made directly to the Bank upon fulfillment of the contract.

Guarantees / Bid Bonds

A Guarantee / bond is an undertaking by the Bank on behalf of its customer to guarantee a third party payment in the event of loss on the contract undertaken. We have several types of guarantees as indicated below:

Bid Guarantee or Bid Bond

The product is available to all our customers who are tendering for new contracts.

Performance Guarantee

The Performance Guarantee is available to all our customers who have been awarded contracts, e.g. audit, construction, supply, transportation etc. The principal contractor demands for an undertaking from the Bank, that in the event of non-performance or unsatisfactory performance by our customer, the Bank would refund the amount of the loss, which will be limited to the guarantee amount.

Advance Payment Guarantee

An Advance Payment Guarantee is available to all our customers who are awarded contracts where the principal contractor requires funds to be released in advance. This enables the contractor access to working capital to commence the project.

Maintenance Guarantee

Available to all our customers who are awarded contracts for carrying out maintenance works such as cleaning, repairs etc. for a certain period.

Retention Guarantee

This is available to customers who have already entered into contracts and the Bank undertakes to allow the contractor to release the full payment. In the event of defect arising on the works within a stipulated period the Bank is liable to pay the retention amount to the principle contractor.

Home Loans

At Cavmont Bank, we understand that at different stages in the customers life, whether they are single, married or with a growing family, customers have changing housing needs. Cavmont provides customers with the best financing options to help own the ideal home that meets their particular needs. The amount that can be accessed depends on the affordability of the loan. 

Please click here to download the Home Loan brochure

Residential Building Loan

If customers plan to build their own home rather than buying an existing one, Cavmont Bank can provide the necessary finance. If the plan is to renovate, Cavmont can give access to a loan to make improvements and increase the value of the property.

Housing Loan Scheme

Cavmont Bank has designed a Housing Loan Scheme for employers that understand the value of caring for their employees. This product is available to all approved institutions that want to empower their staff to own property. The institution signs an agreement with the Bank to finance housing loans for their employees. The Bank requires the institution to pay a minimum deposit of 20% or supply a Housing Scheme Guarantee.

Commercial / Industrial Loans

This product is used for the acquisition or building of commercial / industrial property. It is available to all customers up to a maximum period of ten years. Where applicable, such a loan must, amongst others, be supported by cession of lease agreement(s) that is concluded with tenants occupying the property.

Farm Land

Long-term finance to the owner or prospective owner for the specific purpose of acquiring or improving property for farming purposes. Financing can be arranged over a maximum period of 10 years.

Short and medium term finance in Zambian Kwacha and foreign currency

Personal and business loans are accessible to both individuals and businesses for a period of up to 60 months.