Long Term Financing
Fixed Term Loan: Fixed Term Loan is provided to finance capital expenditure for construction/development of the project. Such expenditure includes total project cost including but not limited to purchase of land, civil construction, purchase of machinery & equipment, vehicles, interest during construction (subject to approval of Nepal Rastra Bank) etc. The loan is disbursed based on the verification report submitted by the financial &/or technical consultant appointed by the bank or consortium.
Bridge Gap Loan (within Fixed Term Loan): Bridge Gap Loan is provided to finance the bills/cost/advance until the consultant appointed by the Bank/consortium verifies the bills on behalf of Bank/consortium. The Loan is settled by the subsequent Term Loan disbursement.
Short Term Financing
Working Capital Loan: Working capital Loan includes Demand Loan and/or Overdraft Loan which is provided to finance working capital requirement of the project/unit after commencement. This loan is revolving in nature and will be renewed yearly based on satisfactory account performance.
Non Funded Services:
Letter of Credit (LC): Letter of Credit is provided to import plant and equipment, machinery and/or other construction materials including raw materials required for the project before and after commencement. Retirement of LC is done through disbursement of term loan or working capital loan based on the goods imported.