Working Capital

Published on: 2022-12-05

 Overdraft / Short term loans for you to be able to manage your day-to-day business requirements.

• This loan will help you to build up your inventory and receivables, against which the loan will be disbursed.

Checklist of Copy of Basic Documents required for Corporate Loans

a)      Title Deed (lalpurja)

b)      Blue print of cadastral map (Napi Naksha)

c)      Recent land revenue payment receipt from malpot office (Tiro Tireko Rashid)

d)      Wealth tax payment receipt of the borrower.

e)      Copy of property transfer deed.

f)       Nata pramanit certificate issued by local authority.

g)      Certificate from municipality stating the name of land owners of four corners      along with kitta no. (Char-Killa Pramanit Gareko)

h)      Citizenship certificate of the landlord.

i)        Approved/Certified building drawing along with the approval (Naksha Pass Certificate)

j)       “No Objection Letter’ (NOC) in case of collateral owned by third party (Manjurinama).

k)     NOC from legal heires of owner of the company/institution mortgage of the property/ies.

l)        Copies of proof of rental income.

m)   Past transaction record at previous Bank.

n)      Latest statement of stock.

o)      Latest statement of receivables.

p)      Three years audited/projected Financial Statements/Balance Sheets

q)      Documents related to company/firm:

2.      Registration Certificate

4.      Joint Venture Agreement (wherever applicable)

(i)      Banking facilities

(iii)      Authorization to mortgage

(v)      Provide undertaking

6.      Copy of citizenship certificate of major shareholders.

When it’s time to finance a golden opportunity, a college education or you and your family just need a little extra cash to get through an unexpected emergency, expect more loans and credit services from Progressive Finance — more loan options, more guidance, more understanding. Whatever goal you’re trying to achieve, whatever need you’re trying to meet, Progressive Finance will be happy to assist you in determining what loan option will work best for you.

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  Funded Loan

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  Non-Funded Loan

Target Segment

1. Business enterprises registered with concerned government authority and obtained all necessary permission to operate the business and fully owned by Nepalese citizen.

Purpose

1. To invest in the fixed assets for the development of infrastructures of service business such as schools, hotels, hospitals and other service providing business units.
2. To invest in working capital need for expansion of the service business or newly established service business.

Nature of Facility

1. Term Loan for financing Fixed Assets.
2. Working Capital Loan for financing Working Capital Requirement.

Loan Tenure

1. Up to 20 years in case of Term Loan.
2. Up to 1 year in case of Working Capital Loan.
3. Up to 6 months for Short Term Loan.
4. Grace period shall not exceed 1 year if the project is justified to be in the initial stage.

Financing Criteria

1. Up to 80% of the cost for investment to be made in capital expenditure in case of Term Loan.
2. Up to 80% of NCA Requirement in case of Working Capital Loan.

Loan Limit

1. Loan amount to a single borrower shall not be restricted but single obligor limit as per NRB shall be applicable.
2. Loan amount to a single borrower but under various sectors including SME shall be restricted to NPR 10 mn.

Repayment Mode

1. Repayment shall be on EMI or EQI basis for Term Loan.
2. Interest payment shall be monthly/quarterly basis for Working Capital Loan.

Interest Rate

1. It shall be the published rate by Bank from time to time. click here

Charges

1. It shall be the charges published by Bank from time to time.

Security

1. Legal Mortgage on Freehold Property (Land and/or Building) owned by the enterprise/proprietor/partner in case of firm and in the name of the company in case of company and valued by valuator of Bank.

Insurance

1. Property being mortgaged shall be compulsorily insured sufficiently to cover the Loan amount.

Documents required but not limited to

1. Application form with company seal from entity with photo of the authorized person to deal loan on behalf of the entity and photo of personal guarantor if any.
2. Copy of citizenship certificate of proprietor/partners/director and personal guarantor if any.
3. Net worth statement of proprietor/partner/director/personal guarantor.
4. Property related documents such as land/buildings/apartments ownership certificates, property deed, four boundary certification of property, land revenue receipt, blue print of the land, approved structure of building, construction completed certificate etc.
5. In case of purchase of land & building, copy of purchase agreement between the applicant and the seller.
6. Business related documents such as minute of the firm/company, registration certificate, partnership deed, article of association, memorandum of association, tax clearance certificate, PAN certificate, immediately preceding 2 years audited financial statement and 3 years management certified/projected financial statements in case of working capital loan or projected financial statement up to the period of loan tenure in case of terminating loan etc.
7. Detail business plan in case of loan above NPR 20 mn including details of existing and proposed investment, management and marketing plan, Cost and period of investment, nature of activities,
8. Any other documents to justify the loan that may be decided by the management from time to time or as may be required by regulatory requirement.

All the documents and copies of the documents should be signed by the applicant/ co-applicants to authenticate the documents.