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The Enterprise Financial Solutions (EFS) is developed for providing financial assistance to Small and Medium Enterprises.

  • Enterprise is recognized and synonymous with businesses, entrepreneurs throughout the country
  • The belief is that the word Enterprise is easily understood by the target audience of small business owners, associating it with Business in general.
  • We do not want to associate the word "Small" with the target market of small business owner as we want to create emotional value from the name itself.

The EFS Program covers commercial credit and trade facilities of an amount from NPR 500,000.00 to NPR 10,000,000.00. The product (EFS) offers full range of credit products and services through a simplified credit assessment procedure.

The decisions on extending EFS facilities are based on the customer's turnover and security provided and/or on the financial standing of the business reflected in the official financial statements of the business.


Products

We provide the following range of credit products and services to our customers under EFS scheme:


Overdraft (OD)

OD helps a client to manage its day to day liquidity by financing its cash flow gap.


Demand Loan (DMLN)

DMLN is provided to trading and industrial clients to meet their requirements to finance current assets like inventory stocks and receivables.


Supply Finance

Loans are provided to customers having specific vendor agreements, contracts or supply agreements against the receivable of those specific contracts. These can be given in the form of demand loans or other such products.


Fixed Term Loans (FTL)

Long Term Loans (LTL), Medium Term Loans (MTL) and Short Term Loan (STL) will be advanced in various forms. The following are some of them:

  • Medium or Long Term Loan (MTL or LTL) - Fixed Assets Investments
    MTL or LTL shall be provided to the client mainly for fixed assets investments such as purchase of land or construction of buildings or purchase of plant and machinery.
  • Demand Loan (DMLN)
    STL could be advanced to the client for financing working capital requirement for short period of time. This loan shall be provided for very short period of time and renewal shall be conditional.
  • Bridge Gap Financing (BGF)
    BGF is a short or medium term loan in the form of interim financing given in anticipation of financing for longer duration in the future.


Bills Purchase or Negotiation

The bank can facilitate the cash flow gap of its clientele by providing loans against the security of outward bills, either purchasing within special arrangements or negotiating.


Import/Trust Receipt Loan

To facilitate the corporate/business clients to meet its working capital requirement for the purpose of meeting the gap in its asset conversion cycle, the bank can provide loans against import LCs as per the Central Bank (NRB) directives.


Export Credit

To meet the financing requirements for exporters, the bank can provide pre-shipment and post- shipment loans against export LCs issued by banks acceptable to it.


Letter of Credit (LC)

The bank can open Letters of Credit in many countries through its expanding list of corresponding banks to facilitate the import requirement of its corporate/business clients


Bank Guarantees (B/G)

The bank can issue various bank guarantees to meet the differing requirements of its clientele for various purposes like bidding for tenders, issuing performance bonds and advance payment guarantees. The bank can also issue local guarantees against the counter guarantees of acceptable foreign banks.


Eligibility

  • Proprietorships, Partnerships and Private Limited Companies
  • Minimum 2 years of operation
  • Start Up Business with prior Business or Management Experience
  • Sales turnover must be at least 3 times of the limit.


Security

The EFS loans provided by our bank generally require adequate security cover to be provided by the customer. Security is not the primary factor for the assessment of a proposal; however the availability of adequate collateral securing the extended EFS is generally necessary. We accept the following types of securities:

  1. Registered Mortgage over Land and/or building
  2. Liquid assets like government bonds, fixed deposits (with us or other FIs acceptable to us), cash margin
  3. Semi liquid assets like listed shares
  4. Hypothecation of Stocks and Receivables
The acceptable level of the security/facility ratio is determined taking into consideration the customer's credit history, facility amount, security type, availability of financial accounts, risk and return considerations, and degree of liquidity of their security.

Fees and charges

While granting EFS Loans, the Bank may charge the following fees:

Interest Rate The interest rates fluctuates in the range of 11.50% to 12.50% under the EFS
Accounts servicing one-off fee
EFS facilities 1% of any proposed new amount, but not less than NPR 10,000.00
Interest Rate The interest rates fluctuates in the range of 10.00% to 14% under the EFS.
Security documentation fee Minimum of Rs. 2,500
Annual Review Fees Minimum of Rs. 2,500
Security Release Fee Rs. 2,000
Prepayment Charges 0% ~ 1%
Penal Interest rate Minimum 3% p.a.
Loan Swap Fee 2% p.a. on the outstanding amount


Basic Documentation

  • Application to be completed by the applicant.
  • Details of the sponsor/guarantor, if any.
  • Citizenship of the proprietor/partners/promoters/key person.
  • Financials for the last two to three years
  • Copies of random sampling of sales book, ledge book, debit notes, vouchers, etc which are used for simulating financials in case audited financials are not submitted.
  • Latest sales turnover statement (> 12 months) or in case of new venture projected sales turnover statement (Minimum 1 year).
  • Projected financials in case of financing requirement for capital expenditure
  • Latest current assets position along with other bank outstanding if existent
  • Renewed Firm/Company registration certificate.
  • Renewed Income Tax Certificate/PAN.
  • Title Deed of land and building.
  • Documents of other securities, if any