Since its inception, Nepal Bank Ltd. has been catering to the various and gigantic financial needs of the individuals, business houses, projects, farmers, entrepreneurs etc. In every front, we strongly believe to have lived up to and indeed, exceeded the clients’ expectations. With the change in time, the financial needs and assessments have also gone through many changes. And, we have adapted to the dynamic changes in the industry, and always look forward to serving the clientele in the most effective way.
We serve with the following loan products.
To cater to the financial needs of individuals, small and medium sized businesses, large sized corporate houses and agro-basedbusiness, we provide business loans to finance working capital and/or capital expenditure requirement as well as non-funded facilities such as letters of credit and guarantees for large and small businesses including retailers, wholesalers, cottage and small scale manufacturing and processing units, exporters, importers, contractors, educational institutions, self-employed professionals, medical /health facilities, etc.
a. Term Loan: These loans are disbursed on a generally accepted Debt: Equity ratio to finance the capital expenditure into the businesses. The loan requirement is assessed subject to the business viability, financial feasibility, technical acceptance, cash flow of the business at present and in future etc. Premium is charged on the Base Rate depending on the size of the loan exposure. Depending on the nature of the business, collateral in addition to the project itself may be required along with personal guarantees.
b. Hypothecation/Overdraft/Working Capital/Short Term Loan/Cash Credit/Pledge: These loans are provided to support the short term working capital requirement of the businesses. One of the major disbursement criteria includes margin on stock (for hypothecation and demand loan), Net Working Assets (for Overdraft and Working Capital loans). The maximum tenure of these loans is one year for Hypothecation Loan/Overdraft Loan/Working Capital loan, and 90 days in case of Demand Loan. Premium is charged on the Base Rate depending on the size of the loan exposure. In addition to the primary collateral i.e. stock and receivables, additional secondary collateral is required as per the banking norm.
c. Trust Receipt Loan: For the goods and raw materials of the businesses purchased through Letter of Credit issued by this bank, we provide Trust Receipt Loans for financing the Letter of Credit payments. A generally accepted Debt:Equity ratio is maintained while disbursing the loans. Premium is charged on the Base Rate depending on the size of the loan exposure. In addition to the primary collateral i.e. stock, additional secondary collateral is required as per the banking norm.
d. Letter of Credit: To support the businesses to import goods/commodities/raw materials and mills/machineries, we issue Letter of Credit to the international and local vendors. Commissions, cash margins and collateral requirements vary depending upon the size of the businesses/value of Letter of Credit.
e. Bank Guarantee: We also support our clients by issuing various guarantees such as Bid bond, Performance Bond, Advance Payment Guarantees etc. Commissions, cash margins and collateral requirements vary depending upon the size of the businesses/value of guarantees.
f. Mortgage Term Loan/Overdraft Loans: To support the business requirements, we also provide Mortgage Term Loan/Overdraft Loans on ad-hoc basis to our existing customers. Collateral requirements vary depending upon the size of the loans/businesses. Premium is charged on the Base Rate depending on the size of the loan exposure.
g. Hire Purchase loans: To finance the equipments, vehicles and other mills/machineries, we provide Hire Purchase loans under a generally accepted Debt:Equity ratio, with collateral in addition to the financed equipments/vehicles/mills/machineries. For the existing customers, the additional collateral requirements may be negotiable. Premium is charged on the Base Rate depending on the size of the loan exposure.
h. Industrial Project Loan: To finance the projects such as commercial buildings, hotels, hospitals, amusement parks, factories, agro-based businesses, mills/machineries of the projects, industrial projects etc, we provide both Term Loans and Working Capital loans along with Bridge Gap loan, Letter of Credit and Bank Guarantee facilities.
i. Other Loans: Depending upon the clients’ requirement, we provide certain other loans namely Importers Loan, Pre/Post Shipment loans, Bridge Gap Loans, Agriculture loans etc. For more details, please visit our nearest branch offices, regional offices and/or Head Office, Credit Department.
Infrastructure and Project Loans under Consortium or Sole Financing:
To cater to the rising infrastructural/energy needs of the nation, we stand fully committed and offer a range of Term Loan and Working Capital loan products to Hydropower Projects, Solar Plants, Hospitals, Commercial Complex, Cement Industries etc. We have many such projects under consortium arrangements being the lead bank, co-lead bank, and/or member bank. We have also invested solely on some projects subject to the supervisory directives and guidelines.