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Wholesale Loan

To finance general micro finance loans to marginalized and low income groups of society through Cooperatives, FINGOs and Micro Finance Development Bank.

Eligibility Criteria

Registered institution involved in providing Micro Finance services – Cooperatives, FINGOs and Micro Finance Development Bank

  • Registered institutions as Cooperative and FINGOs involved in providing Micro Finance services with following fulfilled criteria:
    • Should be registered with concerned authority of Government of Nepal.
    • The entities with at least 3 consecutive years of net profit.
    • The entities should have a provision of collecting savings (where applicable), mobilizing credit and borrowing loans from other institutions in its Charter/Memorandum of Article/Articles of Association.
  • Registered institutions as Micro Finance Development Bank involved in providing Micro Finance services with following fulfilled criteria:  That completed 2 consecutive years with net profit.

OTHER CRITERIA

  • Repayment rate of >90% from loan provided to its members.
  • All the loans made by the related financial institution to be as per the criteria laid down by the NRB from time to time.

Loan Amount

  • In case of Cooperatives: 1. Minimum loan size - above NPR 10,000,000/- 2. Maximum loan size - NPR 100,000,000/- 3. Loan amount should not be greater than 1/3 of the institution’s total loan portfolio. 4. Maximum loan amount up to 5 times the Share Capital of the Institutions.
  • In case of NRB licensed Cooperatives:
    • Maximum loan amount up to NPR 200,000,000/-, if the institution meets following criteria:
      • Loan amount is up to 1/3 of the institution’s total loan outstanding or 5 times of its share capital, whichever is higher
      • The entity that falls under Grade B as per MFI Risk Category Assessment conducted by the Bank
      • The entities with at least 5 consecutive years net profit
      • The entities with Non-performing loan less than 3%
  • In case of FINGOs & Micro Finance Development Bank:
    • Minimum loan size - above NPR 10,000,000/-
    • Maximum loan size - NPR 300,000,000/-
    • Loan amount should be up to 25% of the institution’s total loan portfolio or 5 times of its share capital, whichever is higher.
    • The entity that falls under Grade B as per MFI Risk Category Assessment conducted by the Bank.
    • The entities with Non-performing loan less than 3%.

Tenure

  • Overdraft –Maximum period of 1 year from the date of limit implementation or next review date of credit facility whichever is earlier.
  • Term Loan - Maximum up to 5 years.

Repayment

  • Revolving, subject to annual review. Interest repayment on the each quarter end as per the Nepali calendar – Ashwin, Poush, Chaitra and Ashad
  • Term Loan - Terminating lines on Equated Monthly Installment (EMI) /Equated Quarterly Installment (EQI).

Basic Documentation

  • Loan Application.
  • Certificate of Incorporation/Registration (renewed) and PAN.
  • Memorandum of Association and Articles of Association, Charter of the Institution, as applicable.
  • Tax payment receipt.
  • Audited Financial Statement.
  • Board minute.
  • Latest list of the board of directors certified by the company secretary / management.
  • Photograph and citizenship of directors / Members of Committee, key person, as applicable.
  • Business plan of the institutions (where applicable)
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