Agriculture Loan

Agriculture loan is targeted to lower and middle income bracket farmers and agricultural entrepreneurs and Firms and companies commercially involved in agriculture sectors to fulfill their agriculture requirement.

Nature of Facility

Agriculture Loan Individual -Overdraft and Term Loan ( in the personal name)

1. Agriculture Loan for Firm/Company

• Fund Based Facilities

1. Overdraft
2. Short Term Loan
3. Demand Loan
4. Term Loan

• Non-Funded/Trade Based Facilities

1. Bank Guarantee
2. Performance Guarantee
3. Bid-Bond Guarantee
4. Credit Supply Guarantee & other Guarantees
5. Letter of Credit (undertaking facilities) etc.

Loan Limit

1. Agriculture Loan ( Individual)

      Minimum: NPR.400,000.00 (Nepalese Rupees Four Hundred Thousands Only).

      Maximum: NPR. 2,500,000.00 (Nepalese Rupees Two Million Five Hundred Thousand Only)

   *Note: In case of loan amount above NPR 2,500,000.00 in the personal name, waiver approval          from CEO/Acting CEO is required. The loan shall be genuinely utilized for the agriculture                    purpose  and concerned branch should closely monitor the same.

2. Agriculture loan for registered business firms and companies:

• Minimum: NPR 400,000.00
• Maximum: As per business requirement and upon business analysis within Single obligor limit as per the provision of NRB Directives.

Loan Tenure

1. For Agriculture Overdraftloan /Short Term Loan/ Demand Loan (ForIndividual and Business Loan):Maximum up to 1 year

1. For Agriculture Term loan ( For Individual and Business Loan)

• Minimum: 3 Years
• Maximum: 15 Years

3. In case of Non-Funded Facilities:

Up to one year with renewal options subject to satisfactory performance. However, may be up to 5(Five) years considering the customer’s specific requirement.

Grace/Moratorium Period: Maximum One Year if necessary based on agriculture plan and analysis.