The Company may consider sanctioning loans against shares/debentures of acceptable listed companies and against HMG/NRB bonds (National Savings Bond, Development Bond, etc.) provided we are satisfied as to the quality of the securities and of the borrower’s ability to repay.
- Loan against HMG/NRB bonds shall not exceed 95% of the face value of the bond.
- Loan against listed shares shall not exceed 50% of current market value of the share.
- Loan Period within the maturity date if against HMG/NRB bonds.
- Tenure for loan against debentures/shares shall be considered on a case-to-case basis.
Transaction size
- For loan against shares/debentures: minimum amount Rs. 100,000/-
Pricing
- Interest rate shall be determined/ periodically reviewed by the Company taking into consideration the market trend.
- A Management Charge of 0.5% flat of the loan amount shall be payable upfront on loan against shares and debentures (not applicable for loan against HMG/NRB bonds).
Loan Period/ Repayment
- Maximum period of 5 years; depending upon the business.
- Interest payments monthly or quarterly and principal at least on yearly basis.
Transaction size
- Minimum loan amount: Rs. 200,000/-
Pricing
- Interest rates will be determined and periodically reviewed to be in line with the market
