Service Business Loan is designed for providing loans to
customers for meeting day to day working capital requirements or meeting
capital requirements. The main target sectors of this loan are educational,
tourism, health, entertainment and other service related sectors. This facility
can be provided in the form of overdraft, working capital or term based loans.
|The minimum loan amount to
be NPR 10 Million and maximum up to single obligor limit
The tenure of the
overdraft loan shall be one year from the date of disbursement. Overdraft loan
may be renewed and the decision of the renewal is up to the loan approving
In case of term loan, the
maximum tenure of the loan is above one year and up to 15 years from the date
|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
Before approval of working capital nature
For Term Loan Nature Loan, Loan Limit shall not exceed
80% of the total assets financed.
- The amount of receivables, advances and stock
should be taken as a basis for determining the loan limit
- The loan amount should not exceed 70% of Net
Working Capital (receivable + advances+ stocks- creditors/trade payables)
- Trade Advances may be considered, if the
advance is provided as per business practice for that type of business
|This loan may be granted to
already established or newly established firm's/ Partnership firms/ Company/ Institutions
related to service sectors.
The applicant should provide at least the
following documents before initiation of the credit proposal.
- Completed application form of the bank.
- Firm/Partnership/Company Registration paper.
- PAN copy
- Latest tax clearance receipt
- Article of Associations/Memorandum of
Associations (In the case of companies)
- Board minutes regarding loan amount
/Authorize signatory for operation of account
- Details of the guarantors
- Copy of citizenship of
Proprietor/Partner/Shareholders and the guarantors
- Last two years audited financials & Three
- Title deed of the related parties.
- Building construction permission from
competent authority along with the drawing from engineer /architect and
completion certificate in case of outright purchase of land and building
- Payment receipt of latest land revenue
- Four boundaries certificate of the proposed
- Blueprint of land
- Trace map of land
- Other related documents as necessary