Medium Business Loan

Bank offer’s the medium business loan to the trading firms, industries, and other business entities by assessing current assets and liabilities for the short term working capital management of the business. Business can draw up to the limit determined by the drawing power which is being appraised on a regular basis. Bank offers working capital finance to meet short-term fund requirement for managing the day to day operation of the business. Also, Bank offers Term Loans to support capital expenditures for setting up/starting industrial and new business unit as well as for expansion.

Purpose:

• To finance the working capital, capital expenditure requirements including refinancing of equity.

• Facility Type
  • Overdraft Loan
  • Term Loan
  • Demand Loan
  • CAPEX Loan
  • Short Term Loan
• Loan Amount
  • Above NPR 10 Million up to NPR 30 Million
• LTV
  • Up to 80% of FMV of real estate collateral
• Tenure
  • Revolving (Overdraft): 1 year on renewal basis
  • Demand Loan: Up to 1 year payable on revolving basis
  • Term Loan:
    • Capex Financing: Up to 15 Years
    • 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
• Eligibility & Requirements
  • Business registration elapsed at least 6 months from registration date
  • Debt Equity Ratio as mandated by NRB i.e. 80:20
  • PAN is compulsory if loan limit (Individual/Group) exceeds NPR 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).
• 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.
• Bank Statement.
• Main products of the unit/ Firm/ Industry/ Company
• List of major Suppliers/ Buyers.
• All terms and condition to be comply with working capital guideline issued time to time from NRB.