Target Segment:

•  Individual Nepali Citizen and/or Business Entity dealing in Real Estate.
•  Age between 18 years to 70 years (maximum age limited to tenure of Loan) in case of Individual.
•  Individuals with regular source of Income such as from: Employment, Self Employment, Remittance, Rental, Pension etc.
•  Business Entity with the regular income from the concerned business.

 Purpose:

•  Purchase of Land for Residential Purpose or Construction of House in near future (Housing Loan).
•  Purchase of Land for Plotting and Selling Purpose.

 Loan Tenure:

•  Minimum 1 year Maximum 15 years.
•  Grace Period in case of Residential/Housing Loan shall not exceed 1 year if justified by management.

 Financing Criteria:

•  Maximum 50% of the FMV certified by listed valuator of the Bank.
•  Loan limit above NRs 10 million shall not be entertained to Individual Applicant.

 Repayment Mode:

•  Repayment of Principal shall be monthly/quarterly/half yearly/yearly or Repayment shall be on EMI basis.
•  Interest Payment shall be monthly/quarterly.

 Interest Rate:

•  It shall be the published rate by Bank from time to time. click here

 Charges:

•  Service charges, Prepayment charges and all other applicable charges shall be as per Bank's STC policy. 

 Security:

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

 Insurance:

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

 Legal Compliance:

•  Compliance of the provision as precribed by Nepal Government for Residetial House Construction.
•  Valid Residential House Map Approval, Approval for House Construction and House Construction Completion Certificate from the concerned authority after completion.

 Documents Required:

•  Application form with Company Seal from Entity or Applicant/Co-Applicant with photo of the authorized person to deal Loan on behalf of the Entity and photo of Personal Guarantor if any
•  Net Worth Statement of Applicat/Co-Applicant/Proprietor/Partners/Director and Personal Guarantor.
•  Documents related to income such as Salary sheet, Rental agreements papers, Pension book, Proof of Remit receipt in case of Individual.
•  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 Rasid).
•  Copy of Citizenship Certificate of Applicant/Co-Applicant/Proprietor/Partmers/Director and Personal Guarantor if any.
•  In case of Purchase of Land or Land and Building, copy of Purchase Agreement between the applicant and the seller.
•  Six month’s statements of the saving account maintained by the Applicant/Entity, if any.
•  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.
•  Business Plan for amount above NRs 50 million including details of Existing and Proposed Investment, Management and Marketing Plan, Cost and Period of Investment, Nature of Activities, Past Audited Financial  Statements of atleast 2 years incase of existing business and  Projected Financial Statements upto the period of Loan Tenure.
•  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.