This Loan against Share (Margin Lending) is designed for financing against shares, bonds, mutual funds, etc. to individuals and institutions. The loans granted against the security of shares, bonds, mutual funds etc. shall be regulated under this product paper. The purpose of the loan is to finance individuals and institutions against security of shares, bonds, mutual funds, etc., of acceptable listed companies.
Tenure||Maximum one-year subject to
renewal after review.|
|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 or lump
Calculation of Drawing Power:
50% of weighted average price of last 180 days of Ordinary Shares
Last traded closing price of promoter share
Limit/Finance (50% of A or B whichever is low)
Average of 180 days closing price of Ordinary share
Last traded closing price of ordinary shares
Limit/Finance (65% of X or Y whichever is low)
The above are the prerequisites; however, the NRB directives to this effect shall supersede the criteria of calculation of the value of shares and percentage of financing over the value determined thereon.
|Eligibility||Should be a Nepali Citizen
above 18 years or a firm/company incorporated in Nepal with concerned
Government Authority. |
The applicant should provide at least the following documents before initiation of the credit proposal.