Retail Loans

Purpose

  • Construction & Purchase of house/flat

  • Repairs / renovation / additions / alteration to the house/flat

  • Purchase of land to construct house/building for residential purpose

Eligibility

  • EMI should not be more than 60% of *disposable monthly income of the borrower along with that of the spouse/ other members of the family.

  • *Disposable monthly income means total income of the borrower less existing obligation from FIs.

  • Age of Applicant shall not be more than 60 years

Limit

  • Need based Finance

Margin

Residential Housing Loan up to Rs. 1.50 crore:

  • Minimum 10% (in case of construction) however, total margin including cost of land/existing building shall in no case be less than 25%.
  • Minimum 25% of bank value in case of outright purchase of house/flat of the tentative Bank Value
  • Minimum 40% of bank value in case of Land purchase

Residential Housing Loan for more than 1.50 crore:

  • Minimum 25% in case of construction / addition / repair / renovation of the proposed cost.
  • Minimum 25% of bank value in case of outright purchase of house/flat of the tentative Bank Value
  • Minimum 50% of bank value in case of Land purchase

          (subject to NRB stipulation)

Interest rate

  • Competitive rate and charges

Repayment

  • Maximum 20 years or age of 65 years (either of joint borrowers) whichever is earlier.

Security

  • Mortgaged of property (Min 8 feet motorable access)

  • In case of allotment of flat/ buildings, a tripartite agreement shall be executed amongst Developers, Borrowers & Bank

  • Personal guarantee of person(s) acceptable to the Bank shall be obtained.

Insurance

  •  Comprehensive policy as per banks’ clause.

 

Purpose

  • To purchase car / van / jeep/ Multi Utility Vehicles/ Sports Utility Vehicle
    (non-commercial purpose only) for individual and business concerns

Eligibility

  • Gross monthly income (Self employed/Business/Salaried & Other income) of borrower along with that of spouse/other family members should be at least double of monthly installment of the loan

Limit

  • For individuals: 30 times of Net Monthly income or loan amount whichever is lower

  • For business concerns: Need Based

Margin

  • Natural Person (for personal purpose)- not less than 50% of purchase price of vehicle 

  • Electric Vehicle (for personal purpose)- not less than 20%

    (subject to NRB stipulation)

Interest rate

  • Competitive rate (subject to change)

Repayment

  • up to 7 years

Security

  • Registration of the vehicle in the name of the bank

  • Acceptable Collateral security

  • Personal guarantee of person(s) acceptable to the Bank shall be obtained.

Insurance

  • Comprehensive policy with third party insurance as per banks’ clause.

Purpose

  • For purchase of vehicles (construction of body thereon) including bus/ truck/ tipper/ tractors/ excavator/ heavy equipments/ etc. for commercial purpose

Eligibility

An individual, Firm,  Private Ltd. Companies, Public Ltd. (subject to Transport Management Directive)

For Individual:

  • Repayment is to be ensured within 65 years of age
  • Net income to be minimum 150% of the EMI obligation.

For Business firms/concerns:

  • For existing business firms/concerns (this business should be running since at least last 1 year and generating cash profits)
  • For new business less than 1 year’s operations, repayment can be considered on future cash flows based on realistic projections.
  • Debt Service Coverage Ratio to be minimum 1.50:1

Limit

  • Need Based

Margin

  • 50.00% for personal purpose

  • 20%- Electric Vehicle

  • 25% -For public vehicle (with minimum 40 seats), construction, tourism, education, health, and transportation

Interest rate

  • Competitive rate(subject to change)

Repayment

  • up to 5 years

Security

  • Registration of vehicle in the name of bank

  • Acceptable Collateral security

  • Personal guarantee of person(s) acceptable to the Bank shall be obtained.

Insurance

  • Comprehensive policy with third party insurance as per banks’ clause.

 

Purpose

  • To purchase new two wheeler viz.: Scooter(s), Motor cycle(s) & Scooterrete

Eligibility

  • Gross monthly income (Self employed/Business/Salaried & Other income) of borrower along with that of spouse/other family members should be at least double of monthly installment of the loan

Limit

  • For individuals: 30 times of Net Monthly income or loan amount whichever is lower

  • For business concerns: Need Based

Margin

  • Natural Person (for personal purpose)- not less than 50% of purchase price of vehicle 

     (subject to NRB stipulation)

Nature

  • Term loan

Interest rate

  • Competitive rate (subject to change)

Repayment

  • 3 yrs on EMI basis

Security

  • Registration of bike in favor of bank
  • Guarantee of spouse/other family member or 3rd party guarantee acceptable to the Bank.

Insurance

  • Comprehensive policy with third party insurance as per Banks’ clause

Bank has tie up arrangement with different companies for financing of bikes.

 

Purpose Advances to pursue higher education in Nepal as well as abroad.
The finance covers :

  • Admission Fee
  • Books and stationery
  • Instruments required for the course undertaken by the borrowing scholar
  • Monthly fees/Tuition fees
  • Examination Fees
  • Caution deposit/building fund/refundable deposit supported by Institution bills/receipts
  • Any other expenses required completing the course like study tours, project work, thesis etc.
  • Boarding and lodging expenses in recognized Boarding Houses/Private accommodations.*

*In case of private accommodations, the reimbursement may be allowed to students up to prevailing charges of recognized Boarding Houses in the area.

Eligibility
  • Nepali Citizens (16-30 yrs)
  • For masters and higher studies: 35 yrs
  • At least 50.00% marks to be in secured in last qualifying
  • Regular source of income of parents
Limit
  • Need Based
  • The amount of loan shall be co-related to the expenses involved in taking up the course by student and the expected earnings after qualifying
Disbursement
  • Loan shall be disbursed as term loan
  • Year-wise limit shall be set up based on total expenses involved in completing the course within the overall limit and disbursement made accordingly
Margin
  • Nil
Security
  • Collateral security/FD equivalent to 100 percent of the loan amount acceptable to the Bank
Interest rate
  • Competitive rate
Repayment
  • The interest shall be regularly paid on monthly/quarterly basis.
  • Repayment shall start one year after the completion of study or one-month after getting employment whichever is earlier in maximum 84 equal monthly installments (7 years)

“Sanjivani” Education Loan Scheme to Medical Students for MBBS/BDS studies in Nepal

Purpose Advances to pursue medical studies- MBBS/BDS in Nepal.
The finance covers :

  • Admission Fee
  • Books and stationery
  • Instruments required for the course undertaken by the borrowing scholar
  • Monthly fees/Tuition fees
  • Examination Fees
  • Caution deposit/building fund/refundable deposit supported by Institution bills/receipts
  • Any other expenses required completing the course like study tours, project work, thesis etc.
  • Boarding and lodging expenses

*In case of private accommodations, the reimbursement may be allowed to students up to prevailing charges of recognized Boarding Houses in the area.

Eligibility
  • Nepali Citizens (18-30 yrs)
  • At least 55.00% marks to be in secured in last qualifying examination from recognized by HSEB/ University in Nepal
  • Regular source of income of parents/ guardian (Income to be minimum of 200% of the interest amount.
Limit
  • Maximum Rs. 35.00 Lac for fees and all other costs (includes fees, books, instruments and all other expenses)
Margin
  • 10.00%
Interest
  • Competitive rate
Repayment
  • Repayment shall start one year after the completion of study by the borrower or one-month after getting employment whichever is earlier.
  • The interest shall be regularly paid on quarterly basis.
  • After the completion of the normal time of the course, the principal shall be payable in maximum 72 equal monthly installments.
Disbursement
  • A lump sum disbursement of up to 90% of the total fees shall be made to the concerned colleges or upon production of receipt of fees paid by the students/ guardian or on installment basis as per the fee payment structure of the college/institution.
  • Also, re-imbursement shall be made with confirmation from the college and letter of receipt of fees within 3 months of payment.
Security
  • Collateral security equivalent to 100 percent of the loan amount acceptable to the
  • Bank FD covering 100% of the loan amount is also acceptable.
Insurance
  • Term Insurance policy for 12 years (non-endowment policy) for the loan amount in the name of the borrower students to be taken.

Purpose

  • To meet business/personal needs.

Eligibility

  • Property owners having their properties ( situated in urban areas of Kathmandu / Pokhara/Birgunj/Biratnagar and others ) let out such properties to Government/Semi-Government and reputed corporates, Banks, Financial Institution, Insurance Companies, Multi National Companies, NGO’s/INGO’s and Embassy Officials.

Limit

  • Maximum 80% of the future lease rentals which should not exceed the amount of rent receivables within unexpired period of deed/lease deed or 3 years whichever is less.

Interest Rates

  • Competitive rate

Security

  • Assignment of Lease Rentals
  • Registered mortgage of immovable property to the extent of 125% of the proposed loan
  • Personal guarantee of the borrower and the mortgage provider.

Disbursement

The loan amount will be disbursed on:

  • Assignment of lease rentals
  • Registered mortgaged of immovable property
  • Extension of Tripartite agreement

Repayment Options

  • Loan with interest is to be repaid in equated monthly installments in 36 months or the remaining period of lease whichever is earlier.
  • The quarterly interest is to be paid within one week of the close of the quarter.

 

Purpose

  • Financing for Purchase/Construction of shop & showroom/Acquiring of assets for furnishing of self-owned shop & showroom like partition, fixture and furnishing etc/purchase of air-conditioners, other gadgets required for running the business by units/Individuals undertaking business activity.

Eligibility

  • Individuals, Firms (Proprietorship/Partnership), Companies.

Limit

  • Need based finance

Margin

  • Minimum 40 % on purchase price
  • 25% on cost of furnishing/renovation/equipments

Interest Rates

  • Competitive rate (subject to change)

Security

In case of constructed property: 

  • Mortgaged of the property to be purchased is to be created in bank’s favour.

In case of projects under construction:

  • Mortgaged property, a Tri-partite agreement between the developer, the bank and the Borrower can also be accepted on case to case basis
  • “No Objection Letter /certificate” from project financing bank.
  • Mortgage of alternate collateral of equivalent bank value
  • Upon issuance of title deed of the property financed by us same is to be mortgaged in bank’s favour. 

Disbursement

  • In case of already constructed projects disbursement to be directly made to the seller.
  • Disbursement shall be done in phases as per agreement between buyer and seller in case of under construction projects.

Repayment

  • Upto 10 years maximum.

Insurance

  • Comprehensive policy as per banks’ clause.

 

Purpose

  • Purchase of Equipment used in the profession undertaken.
  • Purchase of furniture, furnishing & fixtures of the office premises
  • Working Capital requirement

Eligibility

  • Nepalese Citizen
  • Individuals/ firms & joint ventures professionals are engaged.
    Medical practitioners including Dentists, Chartered Accountants, Engineers,
  • Construction contractors, Management Consultants and other professionals who are recognized by government.
  • Technically qualified by bank

Limit

  • Upto Rs. 25.00 Lacs

Margin

  • Minimum margin 30%

Interest rate

  • Competitive rate

Repayment

  • 5 yrs including moratorium period of 6 months

Security

  • Hypothecation of fixed assets in favor of bank (existing assets if any)
  • Collateral Security acceptable to bank

Insurance

  • Comprehensive policy as per banks’ clause.

 

Purpose
  • To meet personal/social/financial obligation
Eligibility
  • Confirmed permanent staff of the corporate under tie-up arrangement, salary account maintained at EBL & served for more than 3 years and eligible for gratuity & PAN holder.
  • Net income to be minimum 200% of the EMI obligation
  • Not more than 55 years or min 6 years remaining period of employment.
Limit
  • 25 times of net monthly income and maximum up to 15.00 Lacs.
Nature
  • Term Loan
Interest rate
  • Competitive rate (subject to change)
Repayment
  • 5 years
Security
  • Letter from the concerned Company certifying the employment and the income.
  • Authority letter for deducting of EMI & appropriating terminal dues addressed to the employer by the borrower.
  • Acknowledgment from the Company required for loan provided by our bank and they have to intimate us upon their resignation and employee to be relieved only after submission of No Due Certificate from the bank.
  • Undertaking from the Borrower for prior information to the bank regarding his /her transfer/resignation.
  • Acknowledgement from the Company that in case of borrower/employee leaving the organization for whatsoever, the company shall adjust the outstanding loans at the bank from the terminal dues available.
  • Any other security documents on case to case basis

 

Purpose

  • Loan against mortgage of immovable property located in urban centers will be allowed to Individuals / Business Enterprises for meeting their business and /or personal needs.
  • Loan to firms engaged in Real Estate shall not be considered.

Eligibility

  • Individuals / Business Enterprises for meeting their business and /or personal Needs

Nature

  • Term Loan /Overdraft Loan

Limit

  • Maximum 35  times of net monthly disposable income in case of Term Loan
  • Maximum 40 times of net monthly disposable income in case of OD loan 
  • Maximum Rs 50.00 lac (In case of personal OD)

Interest rate

  • Competitive rate (subject to change)

Repayment

  • In case of Term Loan Repayment period maximum 10 years with disposable income at least double the installments of proposed loan.
  • In case of Overdraft – OD shall be allowed only wherever supported by business for one year and renewed/reviewed on satisfactory performance.

Security

  • 200% of value of residential house/flat, commercial or industrial property
  • Personal guarantee of person(s) acceptable to the Bank shall be obtained.

Insurance

  • Comprehensive policy as per banks’ clause.

Purpose

  • Advances against the primary security of physical shares in dematerialized form

Eligibility

  • Individuals/ Firms/ Companies
  • Shares of Companies listed in NEPSE & approved by bank to be pledged
  • Shares to be transferable in bank’s name

Limit

  • Individual/Firms/Companies

Nature

  • Overdraft/ Demand loan (OD for individual maximum upto Rs. 50.00 Lacs)

Margin

  • Minimum margin 50%
  • Loan is extended upto 50% of the average value of the pledged shares as calculated on the basis of closing price of previous 180 working days or prevailing market price of shares, whichever is less
  • Drawing power is calculated at weekly intervals
  • Payment of margin shall be called in case of fluctuation in value of the shares

Interest rate

  • Competitive rate (subject to change)

Repayment

  • Subject to renewal (OD only) upon satisfactory performance.

Security

  • Earmarked/Rokka of shares with Security Exchange Board in Bank’s name

Eligibility

Advancing against the security of Life Insurance Policies (LIP). It considered in individual cases on merits after ensuring the following:

  • There are no encumbrances on the relative policy.
  • The age of the assured stands admitted in the book of the respective companies.
  • Premium is paid up to date

Limit

  • Need Base – Maximum 90% of Surrender value of Life Insurance Policy

Nature

  • Overdraft/ Demand loan

Margin

  • 10% of the Surrender value of LIP

Interest rate

  • Competitive rate (subject to change)

Repayment

  • 1 year subject to renewal upon satisfactory performance.
Procedure for calculation of Surrender Value
  • Surrender value is allowed after 3 years completed period of policy and the bonus is accrued only when the policy has run for complete 5 years from the date of commencement.
  • The Surrender values calculated on the basis of paid up value plus the bonuses accrued thereon and multiplying the surrender value factor. The Surrender Value Factor charts to be collected from the respective insurance companies.
Companies approved for allowing advance against LIP
  • Rastriya Beema Sansthan
  • National Life Insurance Company
  • Life Insurance Corporation (Nepal) Ltd. &
  • American Life Insurance Company.
  • Nepal Life Insurance Corporation

 

Eligibility

  • Indian ex- army (Indian Pensioners)

Purpose

  • To meet personal/social/financial obligation

Limit

  • 24 times of monthly pension

Nature

  • Term loan

Interest rate

  • Competitive rate (subject to change)

Repayment

  • 5 years

Security

  • Lien over Pension Patta*

* Waiver of lien over pension patta on case to case basis