Friday June 18,2021

Personal Overdraft

This product offers overdraft limit against mortgage of land and building within the threshold of regulatory framework. This is a quick solution to your immediate and contingent funding requirements. Loan processes are simplified and expedited coupled with features of convenient payback facilities tied with revolving credit line.

Features of Personal Overdraft

  • Attractive & competitive interest rate
  • Loan size of up to NPR 5 million
  • Annually renewable
  • Personal counseling throughout the process
  • Simplified documentation requirements
  • Quick approval and transparent loan processing
  • Loan processing from wide range of branch networks

Terms & Conditions

  • 50% of Distress value of the property is required in margin
  • Interest to be served on a monthly basis whereas principal to be serviced on an annual basis if not renewed at maturity/expiry.
  • Loan Repayment obligation of the borrower should not exceed 80% of the borrower’s Uncommitted monthly income (i.e. net saving after all expenses except EMI)
  • Disclosed income must be substantiated by the transaction volume of the Bank account
  • In-case of existence of building or construction financing, the building to be insured against Fire, Earthquake, terrorism, etc as applicable with the Banker’s Clause for full value
  • The property proposed for the mortgage should have at least 8 feet wide motorable access. if the property is 1 ropani or above in area 10 feet wide motorable access is required

Frequently Asked Questions (FAQs)

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Fees & Charges

Particulars Charges

Loan Administration Fee and renewal

0.75% of the loan amount and 0.15% of the limit for renewal

Commitment Fee

0.15% of the unutilized limit

Prepayment Fee

0.15% of outstanding in case the loan is taken over by other Banks or FIs

Valuation Charge

0.125% of Fair Market Value or NPR 30,000 whichever is lower

Penal Charge

Penal interest

Category

Remarks

i)

Principal Default

:

@ 2% p.a. for overdue principal amount for delayed period

ii)

Interest Default

:

Penal Interest shall be collected @2% plus on effective interest rate (i.e. base rate +applicable premium rate) of the particular defaulted account on overdue interest amount for delayed period.

CIC Charge

On Actual Basis

Late Payment Fee

NPR 500 each in case of principal and/or interest default

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