1. What is a Permanent Loan?
Permanent Loans are loans where the maximum interest rate is restricted to a percentage (12%) over the official discount rate of the Central Bank. A Permanent Loan differs from other loans in that it has neither an amortization nor a repayment period.
2. What are the types of Permanent loans?
The bank offers different types of permanent loans, including:
- Financial Loans
- Credit lines
- Foreign trade financing
- Export credit line
- Project financing.
3. What are the benefits of a permanent loan?
The main benefit of a permanent loan is that it does not have an amortization or repayment period, which means companies can use the money at their discretion and repay it when they have the cash flow to do so. In addition, the maximum interest rate will always remain 12% over the Central Bank’s official discount rate.
4. Drawbacks of Permanent Loans?
One drawback of a permanent loan is that it cannot be renewed. Once the item has circulated as many times as you allow, it must be returned to the library’s collection (or another member of this group). That means if your book gets lost, damaged, or stolen after repeated use by our patrons, we can’t replace it with another copy.
5. The Responsibilities Associated with Permanent Loans?
Generally, the responsibility of a permanent loan is on the donor. That means if you donate a book and it is lost or stolen, we will make every effort to find a replacement copy for you. However, if we can’t find one quickly or at all, you might be asked to replace the item yourself.
We will accept and use your donation in good faith, and we will treat it with care; we ask that you do the same by keeping track of your donated items and notifying us if something is lost or damaged.
6. Types Of Commercial Real Estate Loans?
Permanent Loan:
Permanent Loans are loans where the maximum interest rate is restricted to a percentage (12%) over the official discount rate of the Central Bank. A Permanent Loan differs from other loans in that it has neither an amortization nor a repayment period.
Construction Loan:
Construction loans are donations of money to assist in the construction, renovation, or expansion of the library. This is not a permanent loan rather it is a short-term loan.
Bridge Loan:
A bridge loan is a temporary and usually short-term loan. It typically serves as a transitional lending mechanism, bridging the gap between two sources of loans for an item or collection.
7. Who can apply for permanent loans?
All Guatemalan companies, international enterprises, and joint ventures registered in the country that have been operating for at least one year can apply for a permanent loan.
