Loans Fees

Loans Fees
A nonrefundable processing fee of $ 100 must be submitted with the application for a preliminary commitment. In addition, a commitment fee of 1h percent per annum on the undisbursed balance of direct loans and on certain guaranteed loans is charged. An exposure fee is charged as a flat fee per $ 100 of loan or guarantee and varies according to the repayment term (1 to 10 years), country risk category (A through E) and category of buyer (I, II, III). This fee can range from as little as V2 percent or .50 per $100, to highs of $6 to $8, depending on perceived risks, and is paid at the time of each disbursement. "A" is for the most sound and politically stable countries, "E" for the least stable, some of which would be uninsurable. "I" stands for sovereign borrowers or buyers (lowest risk and therefore rate); "II" for creditworthy, nonsovereign public institutions, banks, or exceptional private buyers; and "III" is for other creditworthy private buyers.

Relative
 exposure fee  direct loans  guaranteed loans  stable countries  private buyers  country risk  risk category  repayment term  public institutions  commitment fee  term 1  disbursement  borrowers  10 years  banks

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