July 20, 2024 (श्रावण ५, २०८१, शनिवार)
071- 415502 / 415503 .
Trading Loan

Target Segment :

  1.  Business Entity established as per prevailing laws in Nepal.

 Purpose : 

  1.  To finance the Fixed Assets for establishment, expansion or diversification of the Business.
  2.  To finance Working Capital need for expansion of Trading Business or for newly established Business.

 Loan Tenure : 

  1.  Minimum 1 year Maximum 10 years in case of Term Loan.
  2.  Up to 1 year in case of Working Capital Loan.

Financing Criteria : 

  1.  Maximum 80% of the Total Investment Cost for financing Fixed Assets for Term Loan.
  2.  Maximum 70% of the Net Working Capital for Working Capital Loan.

 Repayment Mode : 

  1.  Repayment of Principal shall be monthly/quartly/half yearly/yearly or Repayment shall be on EMI basis.
  2.  Interest Payment shall be monthly/quarterly.
  3.  Debt Service Coverage/ Interest Coverage Ratio shall be at least 2 times.

 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.  Legal Mortgage on Freehold Property (Land and Building) valued by listed valuator of Bank.

 Insurance : 

  1.  Property being mortgaged shall be insured sufficiently to cover the Loan amount.

 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.  Use of Loan for Financing Capital nature Expenditure.
  4.  Financing in the Industries prohibited by Nepal Government, Nepal Rastra Bank, Facilitating Anti Money Laundering Activities.

 Documents Required : 

  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.  Net Worth Statement of Proprietor/Partners/Director and Personal Guarantor.
  3.  Property related documents such as Land/Buildings/Apartments Ownership Certificates, Property Deed if any, Blue Print, Trace Map, File Naxa if any, Four Boundary Certificate of Property, Land Revenue Tax Payment (Tiro Rashid).
  4.  Copy of Citizenship Certificate of Proprietor/Partmers/Director and Personal Guarantor if any.
  5.  Six month’s statements of the saving account maintained by the Applicant (Entity), if any.
  6.  If the applicant’s business income is used to justify the cash flows, the applicant shall be required to submit copies of all business related documents such as Registration Certificate, Partnership Deed, Minutes, Article of Association, Memorandum of Association, Tax Clearance Certificate, PAN certificate, Latest Audited and /or Provisional Financial Statements.
  7.  Business Plan including details of Existing and Proposed Investment, Management and Marketing Plan, Cost and Period of Investment, Nature of Activities, Past Audited Financial Statements of at least 2 years and  Projected Financial Statements of at least 3 years in case of Working Capital Loan and Projected Financial Statements up to the period of Loan Tenure.
  8.  Detail list of existing stock viz. name, volume, rate and value and receivables and projected list of stock and receivables for existing entities and projected list of stock and receivables for new entities.
  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.
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