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.
- Minimum amount of the loan shall be NPR 0.5 Million
- Maximum loan limit shall be as per NRB Directives.
- In case of personal share loan the Overdraft limit shall be maximum up to NPR 5 Million.
- Maximum one-year subject to renewal after review
- 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
(50% of A or B whichever is low)
- Average of
180 days closing price of Ordinary share
- Last traded
closing price of ordinary shares
(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.
- Should be a Nepali Citizen
above 18 years or a firm/company incorporated in Nepal with concerned
- Completed know your customer (KYC) form.
- Completed application form.
- Passport size photograph of the borrower and
- Map of applicant’s and the guarantor’s
- Copy of citizenship/passport of the applicant
- Proof of Income Source of the applicant.