Target Segment:
1. Industries established as per prevailing laws in Nepal.
Purpose:
1. To finance the Fixed Assets for establishment, expansion or diversification of the industry.
2. To finance Working Capital need for expansion of Industry or for newly established industry.
Loan Tenure:
1. Minimum 1 year Maximum 20 years in case of Term Loan.
2. Up to 1 year in case of revolving Working Capital Loan.
3. If the loan falls under the purview of ‘Working Capital Loan Guidelines’ of the Development bank, the tenure for the Permanent Working Capital Loan shall be as per the provision of ‘Working Capital Loan Guidelines’
4. Grace Period shall not exceed 1 year if it is justified that the project is in the initial stage.
Financing Criteria:
1. Maximum 80% of the Total Investment Cost for financing Fixed Assets for Term Loan.
2. Maximum 80% of the Net Working Capital for Working Capital Loan.
Loan Limit
1. Loan amount to a single borrower shall not be restricted but single obligor limit as per NRB shall be applicable.
2. Loan amount to a single borrower but under various sectors including SME shall be restricted to NPR 50 mn.
Repayment Mode:
1. Repayment or term loan shall be on EMI/EQI or Ballooning Repayment Schedule.
2. In case of working capital loan, interest payable on monthly/quarterly basis and principal at maturity.
Interest Rate:
1. It shall be the published rate by Bank from time to time. click here
Charges:
1. Service charges, Prepayment charges and all other applicable charges shall be as per Bank's STC policy.
Security:
1. Registered Mortgage on Freehold Property (Land and Building) valued by listed valuator of the Bank.
2. Secured Transaction Registry (STR) Report, if needed
Insurance:
1. Property being mortgaged shall be insured sufficiently to cover the Loan amount.
3. Insurance of Stock /fixed assets being financed needs to be obtained.
Financing Restriction:
1. Industries with Negative Net Profit and/or Net Worth for past 2 years.
2. Refinancing of the Overdue/Defaulter Loan of another Bank and Financial Institution.
3. Financing in the Industries prohibited by Nepal Government, Nepal Rastra Bank, Facilitating Anti Money Laundering Activities.
Documents Required but not limited to:
1. Application form with company seal from entity with photo of the authorized person to deal loan on behalf of the entity and photo of personal guarantor if any.
2. Copy of citizenship certificate of proprietor/partners/director and personal guarantor if any.
3. Certificate of undivided family members from competent authority.
4. Net worth statement of proprietor/partner/director/personal guarantor.
5. Property related documents such as land/buildings/apartments ownership certificates, property deed, four boundary certification of property, land revenue receipt, blue print of the land, approved structure of building, construction completed certificate etc.
6. In case of purchase of land & building, copy of purchase agreement between the applicant and the seller.
7. Business related documents such as minute of the firm/company, registration certificate, partnership deed, article of association, memorandum of association, tax clearance certificate, PAN certificate, immediately preceding 2 years audited financial statement and 3 years management certified/projected financial statements in case of working capital loan or projected financial statement up to the period of loan tenure in case of terminating loan etc.
8. Business plan in case of loan above NPR 20 mn including details of existing as well as proposed fixed assets to be used in the business with brief description of their use in the business and direct and indirect benefits to the business, management and marketing plan, Cost and period of investment, nature of activities,
9. Any other documents to justify the loan that may be decided by the management from time to time or as may be required by regulatory requirement.
All the documents and copies of the documents should be signed by the applicant/ co-applicants to authenticate the documents.
