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.

Major highlights:

Loan LimitThe minimum loan amount to be NPR 10 Million and maximum up to single obligor limit
Loan Tenure

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 authority.

In case of term loan, the maximum tenure of the loan is above one year and up to 15 years from the date of disbursement.
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 sum.


Financing

Before approval of working capital nature loans

 

  • 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
For Term Loan Nature Loan, Loan Limit shall not exceed 80% of the total assets financed.
Eligibility
This loan may be granted to already established or newly established firm's/ Partnership firms/ Company/ Institutions related to service sectors. 




Basic Documents

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 Years projection
  • 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 collateral security
  • Blueprint of land
  • Trace map of land
  • Other related documents as necessary


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Fd Rates
Fixed Deposits

9.00%

Less Than 2 Cr

Individual Deposit (2 Yrs < 30 Mth)

9.00%

Less Than 2 Cr

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