Business Loan

Business loan product is promoted for financing the requirement of business more than NPR 30 Million. The primary target group would be businesses involved in manufacturing, trading & services sectors.

Purpose:

• To finance the working capital, capital expenditure requirements including refinancing of equity, project financing, consortium loan and any other business requirement.

• Facilities Type: Overdraft Loan/ Term Loan/ Demand Loan/CAPEX and Short Term Loan.

  Loan Amount: Above Rs 30 Million.

  LTV: 

  Financing shall be up to 85% of Fair Market Value (FMV) of Real Estate Collateral. However, for business unit whose registration has not crossed 2 years, LTV% shall be restricted within 80%.

  Tenure:

  Revolving (Overdraft) 1 years on renewal basis,

  Demand up to 1 year payable on revolving, 

  Term loan: Capex Financing Up to 15 Years and Core Working Capital Financing  up to 10 Years

  Short Term Loan : Maximum 120 days or working capital cycle whichever is lower, payable on maturity.

  Capital Expenditure Financing:Maximum up to 80% of cost of assets as per tax invoice-In case of New Assets Financing

  Maximum up to 80% of book value as per latest audit/provisional report in case of refinancing  of existing fixed assets.

  Working Capital Loan: Limit shall be determined as per NRB working capital guideline.

  Business Registration elapsed at least months from registration date.

  Debt Equity Ratio as mandated by NRB i.e. 80:20.

  PAN is compulsory if loan limit (Individual/Group) more than 25 lacs.

• Loan Application
• Audited and 3 years projected Financial Report.
• Copy of Firm/ PAN/ VAT Registration Certificate, Partnership Deed, Latest Tax Clearance Certificate.
• MOA/ AOA (If Any).
• Company’s Profile
• Board Resolution for opening A/C, Availing Loan, Delegation of Authority (If any).
• Copy of citizenship and 1 copy of PP size photograph of all directors.
• Project Proposal (If any).
• Profile (Biodata) of the Directors/ Shareholders.
• Documents related to fixed assets security (i.e. Lal Purja, Tiro Rashid, etc).
• Bank Statement.
• Detail report of Stocks, Account Receivables, Account Payables, Goods in Transit, Sales, Purchase etc.
• If Directors/ Shareholders are involved in other company details of the company.
• List of major Suppliers/ Buyers.
• Main products of the unit/ Firm/ Industry/ Company