Loans & Credit
When it’s time to finance a golden opportunity, a college education or you and your family just need a little extra cash to get through an unexpected emergency, expect more loans and credit services from Progressive Finance — more loan options, more guidance, more understanding. Whatever goal you’re trying to achieve, whatever need you’re trying to meet, Progressive Finance will be happy to assist you in determining what loan option will work best for you.
|1.||Auto/Hire Purchase, Real Estate, Personal, Share, Educational, Foreign Employment, Home, Loan Against Insurance Policy, Unified Agriculture – Personal (Above Rs. 1 Million), SME (Above Rs. 10 Million), Unified Agriculture – Business (Above Rs. 10 Million), and others.||Base Rate + Premium upto 7%|
|2.||SME Up to Rs. 10 Million, Unified Agriculture – Personal (Up to Rs. 1 Million), Unified Agriculture – Business up to Rs. 10 Million||Base Rate + Premium upto 7%|
|3.||Deprived Sector(Wholesale**, Retail**)||Base Rate + Premium upto 4%|
|4.||Subsidy Loan||As defined by NRB|
|5.||FD Receipt Loan||Up to +3% on coupon rate or base rate|
|6.||Consortium Loan||As per consortium decision|
|7.||Fixed Rate to All Loan Porducts||15.0%|
** Negotiable in case of Retail(Direct Lending) on Deprived Sector Note: Premium rate of each borrower shall be determined subject to loan type/category, tenure, internal credit risk grading etc.
Know more information about the Loan Products provided by Progressive Finance Limited
An Industrial loan is any type of loan made to a business or corporation, as opposed as to an individual. Industrial loans can be made in order to provide either working capital or to finance capital expenditures such as acquire or significantly improve assets such as land, buildings, equipment, furnishings, fixtures, vehicles. This type of loan may be short-term or long term in nature and is almost always backed by some sort of collateral.
A business loan is a loan specifically intended for business purposes. Business loans can be made in order to provide either working capital or to finance capital expenditures. As with all loans, it involves the creation of a debt, which will be repaid with added interest. This type of loan may be short-term or long term in nature and is almost always backed by some sort of collateral.
A service sector business loan is a loan specifically intended for business purpose of service nature. This basically caters to hotels/resorts, restaurants, airlines, travels/trekking agencies, organized transport sector, hospitals/clinics/pharmaceutical units, etc. It can be made in order to provide either working capital or to finance capital expenditures. This type of loan may be short-term or long term in nature and is almost always backed by some sort of collateral.
A real estate loan is a loan provided to individual/firm/company to acquire or significantly improve assets such as land, buildings or to construct buildings on acquired land for residential or commercial purpose. This type of loan is usually in term nature.
Inter-Finance Institution loan or Inter-bank lending is a short-term instrument that banks/financial institution use to borrow money from another institution. The loan must be repaid in seven days, unless it is rolled over. Generally, inter-bank loans are used to replenish the cash reserve ratio (the portion of deposit that banks must park at the central bank).
Professional Loan may be asset based or non asset based lending mainly targeted towards meeting various requirements of professionals like Doctors, Engineers, Pilots, Chartered Accountants, NRB Officers, Government/Semi Government Officers, Govt. Owned Corporation/Organization’s Officers, Bankers, University Lecturers (Permanent), Principals or higher authorities of Schools/Colleges, PhD Holders, Employees of Big Corporate Houses and other very similar professions for the fulfillment of their personal/professional requirements. The loan constitutes both revolving and/or term loans paid on Equated Monthly Installment (EMI) basis. Revolving loan shall not exceed more than NRs. 5 Lakhs per individual.
Personal Loan will be provided primarily for fixed asset investment and or to meet personal financial requirement by an individual. Fund may also be used at their discretion Credit Policy Guidelines- 2019 Page 19 of 40 (except illegal/terrorist activities) and such lending (without purpose) shall not be greater than NRs. 5 million or as per NRB directives from time to time. The loan limit may be processed in higher amount than NRs. 5 million if the purpose and use of fund is justified. Customer need and profile shall be duly assessed while determining the loan limit. Personal Loan may be a revolving or term line of credit that is extended against selfowned property.
: Productive sectors are the real sectors of the economy. Sector components of GDP such as agriculture, tourism, hydropower, industries etc. and services are the productive sectors. It reflects the viable, creditworthy picture of an economy emerging. Investment on the productive sectors has been a main focus thus to stimulate economic growth and generate income and employment opportunities. This type of loans can be made in order to provide either working capital or to finance capital expenditures such as acquire or significantly improve assets such as lands, buildings, equipments, furnishings, fixtures, vehicles. This type of loan may be short-term or long term in nature and is secured by adequate and acceptable collaterals.
Loan granted for purchase/acquire of shares of approved listed Public Limited Companies in Nepal Stock Exchange (NEPSE). The end use of this loan can be social expenses, consumption, asset creation or leverage further investments. The loan is provided against pledge of listed shares.
Refer to (CPG) Chapter-9.
Unified Agriculture Loan will be provided for fulfilling the financing need (Working Capital as well as Fixed Capital) of Nepalese Farmers and Firms/Companies for agriculture related purpose. Loan will be provided for farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products, also loan will be provided to those Farmers/Firms/Companies who are associated with processing, manufacturing, marketing and selling of the agricultural products. This type of loans can be made in order to provide either working capital or to finance capital expenditures. This type of loan may be short-term or long term in nature and is secured by acceptable collateral security.
Deprived sector lending is desirable and prioritized as per the national policy objectives of the Government of Nepal to empower socially and financially deprived/underprivileged people such as rural women (Mahila), Janjati, Dalit, Farmers and foreign workers etc. However, such facilities should fall within the framework of credit risk assessment of the Finance. PFL will allocate funds (in wholesale or in retail) to support this sector and see that funds allocated for this sector are used for end use as per specified purpose and that repayments are achieved and the target groups are benefited.
Credit Policy Guidelines- 2019 Page 20 of 40
Loan extended against the pledge of gold and gold ornaments as per the pricing and insurance policy guidelines of the Finance. PFL shall prepare separate Gold loan manual and insurance policy guidelines for implementing this product.
The small and medium enterprises loans extended to the business houses, companies, firms come under the SME loans. BOD will set up the exposure limits that is to be categorized under SME. SME loan would be the focused areas of the Finance. This type of loans can be made in order to provide either working capital or to finance capital expenditures. This type of loan may be short-term or long term in nature and is generally backed by adequate collateral.
The loan shall be provided in order to finance the parents and or the student for their/his/her higher education. This type of loan is in term nature and is generally backed by some sort of collateral.
The Bridge Gap Loan will be provided for short term or medium-term period as interim finance in anticipation of financing for longer duration, loans are generally backed by some sort of collateral.
Home Loan will be provided primarily for purchase/construction of land/land and building/flat/duplex/commercial complex/apartment etc. It also can be provided for already acquired land or building as the equity financing on justifiable ground. This type of loans is in term nature and is generally backed by the financed assets and additional collateral if required.
Hire Purchase Loan will be provided to acquire durable and movable fixed assets such as equipment, vehicles etc. basically for commercial use. Hire purchase loan will also be provided for purchase of vehicles which will be personally used. This type of loan is of term nature and is generally backed by the same and/or additional collateral.
Foreign Employment Loan will be provided for financing individual seeking foreign employment to aboard. This type of loans is in term nature and is generally backed by acceptable collateral security.
The Demand Loan is to be provided to business units to finance short terms current assets/ seasonal business requirement/ working capital requirement. The Demand Loan will generally be provided for up to one year. It will be secured by acceptable collateral security.
Loan granted against own FDR of the Finance.
Credit Policy Guidelines- 2019 Page 21 of 40
Temporary Revolving facility will be provided to the existing borrowers for the purpose of accommodating their short-term working capital requirement in excess of already approved limits. The TRL’s will be provided for a short period of time, generally for 90 days. Acceptable security coverage must be considered.
Loan granted against the Government Securities such as National Saving Bond and Development Bond etc.
The Finance may develop new type of loan products or amend existing products/loans to include in different loan under approval of the Board.