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