Target Segment:

1.  Individual Nepali Citizen.
2.  Age between 18 years to 70 years (maximum age limited to tenure of Loan)
3.  Individuals with regular source of Income such as from: Employment, Self Employment, Business, Remittance, Rental, Pension etc.

Purpose:

1.  Construction/Purchase of Residential Building/Apartment for Residential or Rental Purpose.
2.  Purchase of Land for construction of Residential Building for Residential or Rental Purpose with Approved Construction Plan/Map within 1 year from disbursement of loan.
3.  For Extending/Renovating the existing House/Apartment.
4.  For Refinancing/Swapping Residential Building for Residential or Rental Purpose.

Loan Limit:

1.  Up to Rs.10 million for Purchase and Construction of Residential Building/Apartment.
2.  Up to 80% of Estimation from Listed Valuator of Bank but not exceeding Rs.10 million for Extending/Renovating of the Existing Residential Building/Apartment.
3.  Up to Rs.10 million but limited to current Outstanding Loan in other BFI for Refinancing Residential Building/Apartment.

Payment:

1.  Approved Loan shall be paid on installment basis as per completion of the work.

Loan Tenure:

1.  Minimum 1 year Maximum 20 years.
2.  Grace Period shall not exceed 1 year.
3.  In case grace period is justified to exceed 1 year then should be approved by BOD.

Financing Criteria:

1.  Maximum 80% of the Purchase of Land and Construction Cost of Building certified by Valuator but not exceeding 60% of FMV of the freehold property kept as collateral.
2.  Maximum 80% of the Purchase/Construction Cost of Residential Building certified by Valuator but not exceeding 60% of FMV of the freehold property kept as collateral.
3.  Maximum 70% of the certified cost by Valuator for Extending/Renovation the existing Residential Building but not exceeding 60% of FMV of the freehold property kept as collateral and not exceeding 40 years of the Existing Residential Building.
4.  Maximum Rs 10 million but not exceeding current Outstanding Loan in other BFI in case of Refinance  but not exceeding 60% of FMV of the freehold property kept as collateral.

Financing Restriction:

1.  This type of Home Loan shall be provided only once for one family.

Repayment Mode:

1.  Repayment shall be on EMI basis.
2.  In case of schedule other than EMI Principal Repayment on quarterly basis and Interest on monthly/quarterly basis.

Interest Rate:

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

Charges:

1.  Service charges, Prepayment charges and all other applicable charges shall be as per Bank's STC policy.

Security:

1.  Legal Mortgage on Freehold Property (Land and Building) valued by listed valuator of Bank.

Insurance:

1.  Insurance shall be compulsory equivalent to the valuation amount of the Building.

Legal Compliance:

•  Compliance of the provision as prescribed by Nepal Government for Residential House Construction.
•  Valid Residential House Map Approval, Approval for House Construction and House Construction Completion Certificate from the concerned authority after completion.

Documents Required:

1.  Application form with photo from Applicants/ Co -applicants and photo of Personal Guarantor if any.
2.  Basic information sheet for Home Loan duly filled and signed by the Applicant / Co- applicant.
3.  Documents related to income such as Salary sheet, Rental agreements papers, Pension book, Proof of Remit receipt, FS of business.
4.  Net worth Statement of Applicants/Co-applicants and Personal Guarantor.
5.  Property related documents such as Land/Buildings/Apartments Ownership Certificates, Property Deed if any, Blue Print, Trace Map,File Naxa if any, Four Boundary Certificate of Property, Land Revenue Receipt(Tiro Rashid).
6.  Copy of Citizenship Certificate of Applicants/Co-Applicants and Personal Guarantor if any.
7.  In case of Purchase of Land or Land and Building, copy of Purchase Agreement between the applicant and the seller.
8.  In case of Construction of Building or Renovation or Extension of Existing Building, the detail construction time plan, estimated cost approved by certified Engineer.
9.  Six month’s statements of the saving/current/loan account maintained by the applicant, if any.
10.  In case of independent house/ apartment developed by the real estate company, an agreement paper between the two/three parties is required.
11.  If the applicant’s business income is used to justify the cash flows, the applicant shall be required to submit copies of all business related documents such as Registration Certificate, Partnership Deed, Article of Association, Memorandum of Association, Tax Clearance Certificate, PAN certificate, latest Audited and /or Provisional Financial Statements.
12.  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.