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.
Major Highlights:
| Loan Limit |
|
| Loan
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
sum. |
| Financing | Calculation of Drawing Power: Promoter’s Shares: 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) Ordinary Shares: 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. |
| Basic
Document | The applicant should provide at least the
following documents before initiation of the credit proposal.
|
9.00%
Less Than 2 Cr
Individual Deposit (2 Yrs < 30 Mth)9.00%
Less Than 2 Cr
Individual Deposit (2 Yrs < 30 Mth) More Rates Open Fixed Deposite