Target Segment

1. Individual Nepali Citizen.
2. Age between 18 years to 70 years (maximum age limited to tenure of Loan).
3. Individuals with regular source of Income such as from: Employment, Self Employment, Remittance, Rental, Pension etc.

Purpose

1. To meet investment and/or personal needs of Individual.

 Loan Tenure

1. Up to 1 year. 

Financing Criteria

1. In case of loan against ordinary shares, loan amount shall be restricted to 65% of security value which is determined as: ‘lower of average price of last 180 working days or latest closing market price of immediate last trading day’ multiplied by number of shares. Enhancement in loan limit based on revaluation of pledged shares is restricted.
2. In case of loan against promoters’ shares, borrower is allowed to pledge only up to 50% of total shares owned by him/her in case he/she holds more than 1% promoter share of BFIs. Security value of such shares is determined as lower of: 50% ‘of average price of ordinary share of last 180 working days or most recent trading price of promoters’ share multiplied by eligible number of promoters’ shares. The loan amount is determined only up to 50% of value as determined. Enhancement in loan limit based on revaluation of pledged shares is restricted. 

Financing Restriction

3. Shares of BFIs that are declared problematic and/or have not been able to maintain required capital adequacy as per NRB directives
4. Companies with negative net worth
5. Companies delisted from NEPSE
6. Companies without having their books of accounts audited even after one year of completion of fiscal year
7. Shares owned by other than own family member’s of the borrower
8. In case of Loan against promoter share, loan shall not be renewable.
9. Margin call shall be done as per the provision of NRB. 

Interest Rate

1. It shall be the published rate by Bank from time to time. 

Charges

2. It shall be the charges published by Bank from time to time.

Documents required but not limited to

1. Application form from applicants with photo.
2. Copy of citizenship certificate of applicant.  
3. Documents related to income source such as salary certificate, rental agreements papers, pension book etc of the applicant.
4. Net worth statement of applicant.
5. Statement showing the shares to be pledged.
6. 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 to authenticate the documents.