Business Short Term Loan is offered to customers for meeting day to day working capital requirements for funding current assets, overheads, administrative expenses etc. This facility can be provided in the form of overdraft, working capital or short-term loans. The maximum tenure of the loan shall be for 1 year and shall be subject to renewal as per client's requirement and satisfactory transaction record in the account in terms of repayment, turnover, etc.
The purpose of this facility is to finance the working capital requirement of the trading manufacturing and service units/industries. Working capital loans are granted in the form of Overdraft or Demand Loan or Short Term Loan. The working capital loan will help to build up inventories and receivable at a level required to run the business smoothly.
Business Term Loans facility will be provided in order to facilitate customers to establish manufacturing industries or production units as well as service businesses for financing the capital assets required for the business. Long Term Loans can be provided up to 15 years but the tenure can be extended as per the nature of the project.
|Loan Limit||The minimum loan amount to
be NPR 10 Million and maximum up to single obligor limit.|
|Loan Tenure||The maximum tenure of the
loan shall be one year subject to be renewed in case of overdraft loan whereas
in the case of fixed term loan etc., the tenure of the loan shall be more than
one year and up to 20 years per the
nature of the project and the requirement of the customer.|
|Repayment||Interest can be paid either
on monthly or quarterly basis in case of working capital nature loans and in
case of fixed term loans principal and interest can paid on EMI basis.|
|Financing||Total Financing shall not exceed 70% the Project Cost. The project may
be financed by the bank after the comprehensive study about the feasibility of
the project duly tied up with the project insurance.|
|Eligibility||This loan may be granted to
already established or newly established firm's/Partnership
firms/company/institutions or production manufacturing units.|
The applicant should provide at least the following documents before initiation of the credit proposal.