Target Segment

1. Individual Nepali Citizen/ entities.
2. Age between 18 years to 75 years (maximum age limited to tenure of Loan).
3. Individuals with regular source of Income such as from: Employment, Self-Employment, Remittance, Rental, Pension etc.

Purpose

1. To meet investment and/or personal needs of against ordinary and/ or promoters shares of public limited company or bonds or mutual funds listed in NEPSE.

 Loan Tenure

1. Up to 1 year. 

Loan Limit

1.      Loan amount (including all BFIs) to a single borrower or group against shares shall be restricted to NPR 150 mn. However, this provision is not applied to an institution established with objective to invest in the shares.

Financing Criteria

1. In case of loan against ordinary shares or mutual funds or bonds, loan amount shall be restricted to 70% of security value which is determined as: ‘lower of average price of last 180 working days or latest closing market price of immediate last trading day’ multiplied by number of shares.
2. In case of loan against promoters’ shares, ‘security value of such shares is determined as lower of:  50% ‘of average price of ordinary share of last 180 working days or most recent trading price of promoters’ share multiplied by eligible number of promoters’ shares. The loan amount is determined only up to 50% of value as determined.

Financing Restriction

1. Shares of BFIs that are declared problematic and/or have not been able to maintain required capital adequacy as per NRB directives
2. Companies with negative net worth.
3. Companies delisted from NEPSE.
4. Companies without having their books of accounts audited even after one year of completion of fiscal year.
5. Loss making companies for consecutive three previous years.
6. Companies which are less than one year of commercial operation.
7. Companies which are not conducting AGM for last three years.
8. Companies which shares are not traded for more than 250 trading days at Stock Exchange.
9. The basic indicators such as Price Earnings Ratio, Price to Book Value, Earnings per Share and Dividend Payout Ratio must be considered during analysis of the acceptable shares to be pledged.
10. Shares of Shine Resunga Development Bank Ltd (SHINE)
11. Shares fall under the lock-In period.

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. 

Documents required but not limited to

1.      Application form from applicants with photo.

2.      Copy of citizenship certificate of applicant.

3.      Certificate of undivided family members from competent authority.

4.      Documents related to income source such as salary certificate, rental agreements papers, pension book etc of the applicant.

5.      Net worth statement of applicant.

6.      Statement showing the shares to be pledged.

7.      If it is business, then registration documents, PAN, citizenship of directors, Audit Report, Tax Clearance, AOA/MOA/Share lagat if any.

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 to authenticate the documents.