WORKING CAPITAL LOAN
The purpose of this facility is to finance working capital requirements of business entities. Such loans are granted in the form of Overdraft/ Working Capital Loan/ Short Term Loan facilities. The working capital loan will help you build up inventories and receivables at a level required to run your business smoothly.
This facility is provided in the form of medium/ long-term loan for the purchase of capital goods and creation of fixed assets in the form of purchase of land and construction of buildings. The duration of loan is assessed by analysis of cash flow statement and balance sheet.
This facility is granted for import trade financing. For retirement of various import trade bills, import loan is granted in the form of Trust Receipt Loan or Time Loan, which needs to be settled within a specified period.
In case of Time L/C, the bills of exchange is to be accepted by the applicant/importer and thereafter the import documents are released for the clearance of goods. On the date of maturity, reimbursement is made to the negotiating / collecting bank by debiting the account of the importer for equivalent local currency.
BILLS DISCOUNTING UNDER USANCE LETTERS OF CREDIT
The usance bills under import letters of credit opened by us may be discounted in conformity with Nepal Rastra Bank regulations.
The Bank provides export finance by way of pre shipment and / or post shipment loan. Against export letters of credit, pre shipment loan is granted up to 80% of the respective export LC. This facility can be availed in foreign currency as well as local currency. The loan is required to be settled by negotiation of documentary bills under export LC or from the export proceeds or post shipment loan.
When two or more financial institutions decide to extend credit facilities to a borrower jointly, the arrangement is known as consortium financing. By consensus, one of the consortium members (generally one who undertakes the largest portion of lending) acts as the lead bank and handles all administrative assignments including loan documentation, insurance management information, loan disbursement/settlement and regular monitoring of the advance. A formal consortium agreement is drawn up which is signed by the financial institutions and the borrower.
If the funding requirement of your project is relatively larger, we arrange financing for such project through a consortium of the banks and / or financial institutions.
This facility is extended by discounting of cheques/drafts.
BRDGE GAP LOAN
Bridge gap financing is short term finance in the form of interim financing pending finalization and disbursement of term loan.