WORKING CAPITAL LOAN

The purpose of this facility is to finance the working capital requirements of trading, manufacturing and service units/industries. Working capital loans are granted in the form of Overdraft or Demand Loan or Time Loan facility. The working capital loan will help you build up inventories and receivables at a level required to run your business smoothly.

TERMS LOAN

This facility is provided in the form of medium/ long-term loan for the purchase of capital goods and creation of fixed assets in the form of purchase of land and construction of buildings. The duration of loan is assessed by analysis of cash flow statement and balance sheet.

IMPORT LOAN

This facility is made suitable in financing your international and local trade transactions carried out through Letters of Credit. For retirement of L/C bills, import loan is grated in the form of Trust Receipt Loan or Time Loan, which needs to be settled within a specified period.

In case of Time L/C, the bills of exchange is to be accepted by the applicant/importer and thereafter the import documents are released for the clearance of goods. On the date of maturity, reimbursement is made to the negotiating / collecting bank by debiting the account of the importer for equivalent local currency.

BILLS DISCOUNTING UNDER USANCE LETTERS OF CREDIT

The usance bills under import letters of credit opened by us may be discounted in conformity with Nepal Rastra Bank regulations.

EXPORT LOANS

The Bank provides export finance by way of pre shipment and / or post shipment loan.

Against export letters of credit, pre shipment loan is granted up to 80% of the relative export LC. This facility can be availed in foreign currency as well as local currency. The loan is required to be settled by negotiation of documentary bills under export LC or from the proceeds of documentary collections or post shipment loan.

CONSORTIUM FINANCING

When two or more financial institutions decide to extend credit facilities to a borrower jointly, the arrangement is known as consortium financing. By consensus, one of the consortium members (generally one who undertakes the largest portion of lending) acts as the lead bank and handles all administrative assignments including loan documentation, insurance management information, loan disbursement/settlement and regular monitoring of the advance. A formal consortium agreement is drawn up which is signed by the financial institutions and the borrower.

If the funding requirement of your project is relatively larger, we arrange financing for such project through a consortium of the banks and / or financial institutions.

BILLS PURCHASED

This facility is extended by discounting of cheques/drafts.