Objective

• To promote long-term finance for new projects and expansion, diversification and
  modernization of existing projects.

Type of Assistance

• Any industrial/development organization that conforms to the Credit Policy
  Guidelines(CPG) of the Bank.

Promoters’ Contribution

• 30% of the project cost (minimum normally expected).

Debt Equity Ratio

• Maximum up to 70:30.

Interest Rate

• Based on minimum term lending rate fixed from time to time.
• Actual rate within the prevailing rate depends upon creditworthiness of borrower and
  risk perception.
• Interest is payable quarterly( Ashwin end, Poush end, Chaitra end & Ashad end ).

Commitment Charge

• 1% on total loan approved.

Service Charge

• 0.50% on total loan approved, only one time prior to disbursement.

Prepayment Charge

• 1.5% on the outstanding loan

Repayment

• In the stipulated installments

Mortgaged Fee

• NRs. 4,000.00

Security

• Registered mortgage over entire project including all the movable and immovable
  assets, present constructions and construction to be made in future.
• Additional collateral as required.

Documentation:

• Loan Agreement Paper
• Sole & first charge over Inventory & Accounts Receivable
• Personal Guarantee
• Letter of Continuity
• Corporate Guarantee, if necessary
• Promissory Note
• Internal Loan Commitment Paper
• Registration/Tax Clearance Certificates including (VAT)
• Articles of Association and Memorandum of Association
• Loan Authorization Letter ( Board Minute )