The document is a summer project report submitted by Tikendra Bhandari on the credit facilities of NIC Asia Bank Ltd. in Mahendranagar Branch. It includes declarations signed by Tikendra and his supervisors. It also acknowledges those who provided assistance. The introduction provides background on banking concepts, the origin of banking in Nepal, types of banks and their functions, and the services offered by banks such as loans, overdrafts, money transfers and currency exchange.

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SUMMER PROJECT REPORT ON
CREDIT FACILITIES OF NIC ASIA BANK LTD.
MAHENDRANAGAR BRANCH
Submitted in partial fulfillment for the award of
Bachelor of Business Administration
By
Tikendra Bhandari
2016-2-03-0046
Batch 2017-20
Under the supervision of
Mr. Dipendra Joshi
Mr. Dipendra Ayer
Brixton college
Pokhara University

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DECLARATION
I hereby declare that the project work report entitled “Credit facilities of
NIC ASIA BANK LTD MAHENDRANAGAR BRANCH” submitted for the BBA
is my original work and the project work report has formed the basis for
the award of my degree, diploma or other similar titles. The information
has been collected from genuine and authentic sources. The work has
been submitted in partial fulfillment of the requirements of school of
business pokhara university.
Tikendra Bhandari
School of business
Pokhara university
Date: 2076/05/22
Supervisor
Mr. Dipendra Joshi
Faculty member
Brixton college

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CERTIFICATE
This is to certify that the project work titled “Credit facilities of NIC ASIA
BANK LTD MAHENDRANAGAR BRANCH” sumitted by Tikendra Bhandari
of Brixton college having roll no. 36 for the partial fulfillment of the
requirements of BBA embodies the bonafide work done by him/her
under my supervision.
………………..
Signature of the supervisor
Name:
Date:
……………….
Signature of in-charge
Name:
Date:

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ACKNOWLEDGEMENTS
An project report entitle “AN SUMMER PROJECT REPORT ON CREDIT
FACILITIES OF NIC ASIA BANK LTD MAHENDRANAGAR BRANCH” has been
prepared to fulfill the partial requirements of the project report of BBA
6th semester. Foremost, I would like to express my deep gratitude to NIC
asia bank for providing the exciting opportunity to be one of them and
giving me through guidance and opportunity to move ahead with project
work objectives. I would like to extend my gratitude to Mr. Surya Prakash
Pathak, Branch manager for providing guidance and motivation to me. I
am also grateful to all the staffs for their valuable cooperation, guidance,
direction and continuous support throughout the project work. I would
like to thank Mr. Dipendra joshi sir and the entire faculty members for
supervising me and providing necessary guidelines to complete the
report. I would like to extend my heartfelt thanks to all who assisted with
their valuable suggestions and ideas while preparing the report.
Thank you!!
…Tikendra Bhandari………….
BBA ( 6th
sem)
Brixton college

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ABSTRACT
As per the curricular of school of business studies at pokhara university,
I was assigned to undergo an project work in an organization during the
sixth semester of the program BBA after a proper study in the required
field. To conduct this study, I choose NIC asia bank limited
mahendranagar branch. During the period of this study, I tried to
discover as much as possible about credit facilities provided by bank to
its customers on loan department of particular branch. The purpose of
this project work was to relate the theoretical knowledge acquired in our
academic period in a real life situation and gain the practical knowledge
as well as experience. The project also had an intention to help me
understand, analyze and present the basic loan practices in Nepalese
banks. It also helped me to gain an insight of various players in the
banking sector and helped to analyze the industry as a whole.

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CHAPTER -1 INTRODUCTION
1.1 Concept of Banking
A bank is a company that provides financial services of various sorts
to various types of customers. Its major function is to gather money
from various people and to lend that money out to other people.
One of the most visible things that a bank does is to take deposits
from customers and act as a place for them to store their money.
The customers put money in the bank and then can draw that in
case of necessity.
A bank is financial institution, which deals with money and credit.It
is an institution that provides a great variety of financial services. It
accepts deposits from the public and mobilizes the fund to
productive sectors. It also provides remittance facility to transfer
money from one place to another. Generally, bank accepts deposits
from business institutions and individuals, which is mobilized into
productive sectors mainly business and consumer lending. So, it is
also called a dealer of money.
Banks are regulated by the laws and central banks of their home
countries; normally they must receive a charter to engage in
business. Banks are usually organized as corporations. At present
context, a bank may engaged in different types of functions such as
remittance, exchange currency, joint venture, underwriting, bank
guarantee, discounting bills etc. Banks are the principal source of
credit for millions of individuals and families and for many units of
government. They are among the most important financial
institutions in the economy.

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1.2 ORIGIN OF BANKING SYSTEM
In the context of Nepal, it is very difficult to trace the correct
chronological history of the banking systems in Nepal because
there are no sufficient historical records and data about banking in
Nepal. The history of banking in Nepal can be described as a
component of the gradual and organized development in the
financial and economic sphere of Nepalese life. Even now, the
country’s financial system is still at an early stage. The existence of
an unorganized market consisting of owners or wealthy merchants,
shop owners and other local lenders acted as a barrier to
institutionalized credit. These institutions, although
underdeveloped, could still mobilize capital. For many years, local
farmers, owners, traders carried out some banking functions.
The population depended to a large extent on agriculture, because
there was no organized financial institution to support agriculture
and other needs. People resorted to the help of unscrupulous
lenders who set high percentages. There was a pledge of land,
houses and precious metals. People kept their savings in precious
metals, gold or silver. In 1877, during the period of the rule of king
ranodip(Ranodipp), many economic and financial reforms were
carried out. One of the first banking institutions “ Tejarat Adz” was
organized by the government in the valley of Kathmandu. In 1880,
during the activities of Prime minister Chandra shamsher, the
banking institution Tejarat Adtsa expanded its powers. And some
financial departments were established in other cities in Nepal,
including the terai region. For several decades, after the
establishment of tejarat adz, no measures were taken to expand its
functions.

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To be continued…..
The first bank of Nepal in its history was established in 1994 BS.
Kartik 30 and named as Nepal Bank Limited. It was established
before the establishment of Nepal rastra bank, the central bank of
Nepal. The bank has developed the culture of saving Nepalese
rupees by displacing the trend of using indian rupees in Nepal. As
well as the culture of saving people’s money and institutionalizing
facilities. The role of the bank has been praised as the first bank in
the country to promote and develop industrialization, trade
expansion, the arrangement of import-export and development of
nepakese economy. Nepal bank limited is a commercial bank which
obtained ‘A’ class from Nepal rastra bank. Nepal bank limited has
been established in joint logistics of Nepal government and private
entrepreneurs.
On june 1, 1945, the first Nepalese paper banknotes were issued-
tickets of the Nepalese government. Since September 1945, their
release continued the central treasury. In 1955, the stste bank act
was adopted. On april 26,1956, the Nepal rastra bank began
operations and in 1960- the issue of banknotes. A new law of 2002
confirmed its role as a central bank. On march 22, 2010, yuba raj
khatiwada became president of the bank. The main tasks of the
central bank are to maintain price stability in support of economic
development, provide liquidity to the banking sector. It has offices
in seven cities: biratnagar, janakpur, birgunj, pokhara,
siddharthanagar, nepalgunj and dhangadi. This central bank
oversees commercial banks in Nepal and guides monetary policy.
Rastra bank Nepal also oversees foreign exchange rates and foreign
exchange reserves. This bank is one of the owners of the Nepal
stock exchange.

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1.3 SERVICES OFFERED BY BANK
In the modern world, banks offer a variety of services to attract
customers. However, some basic modern services offered by the
banks are discussed below:
1. Advancing of loans: Banks are profit-oriented business
organizations. So, they have to advance a loan to the public and
generate interest from them as profit. After keeping certain cash
reserves, banks provide short term, medium term and long term
loans to needy borrowers.
2. Overdraft: sometimes, the bank provides overdraft facilities to
its customers through which they are allowed to withdraw more
than their deposits. Interest is charged from the customers in
the overdrawn amount.
3. Discounting of bills of exchange: this is another popular type of
lending by modern banks. Through this method, a holder of a bill
of exchange can get it discounted by the bank, in a bill of
exchange, the debtor accepts the bill drawn upon him by the
creditor ( .i.e. holder of the bill) and agrees to pay the amount
mentioned on maturity. After making some marginal deductions
(in the form of commission), the bank pays the value of the bill
to the holder. When the bill of exchange matures, the bank gets
its payment from the party, which had accepted the bill.
4. Check/cheque payment: banks provide cheque pads to the
account holders. Account holders can draw cheque upon the
bank to pay money. Banks pay for cheques of customers after
formal verifications and official procedures.
TO BE CONTINUED…….
5. Collection and payment of credit instruments: in modern
business, different types of credit intruments such as the bill of

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exchange, promissory notes, cheques etc. are used. Banks deal
with such instruments. Modern banks collect and pay different
types of credit instruments as the representative of the
customers.
6. Consultancy: modern commercial banks are large organizations.
They can expand their function to a consultancy business. In this
function, banks hire financial, legal and market experts who
provide advice to customers regarding investment, industry,
trade, income tax etc.
7. Bank guarantee: customers are provided the facility of bank
guarantee by modern commercial banks. When customers have
to deposit certain find in governmental offices or courts for a
specific purpose, a bank can present itself as the guarantee for
the customer, instead of depositing fund by customers.
8. Remittance of funds: banks help their customers in transferring
funds from one place to another through cheques, drafts, etc.
9. Credit cards: A credit card is card that allow their holders to
make purchases of goods and services in exchange for the credit
card’s card providers immediately paying for the goods or
service, and the cardholder promising to pay back the amount
of the purchase to the card provider over a period of time and
with interest.
10. Foreign currency exchange: banks deal with foreign
currencies. As the requirements of customers, banks exchange
foreign currencies with local currencies, which is essential to
settle down the dues in the international trade.
1.4 TYPES OF BANKS
According to function and nature of bank, in nepal banks are
classified in following types:

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1. Central bank: The Nepal rastra bank (NRB) was established in
Baishakh 14, 2013 B.S.(April 26, 1956 AD) as a central bank of
Nepal to supervises the banks and financial institutions (licensed
by the NRB) in Nepal and guides monetary policy. Nepal rastra
bank was established in 1956 under the Nepal rastra bank act,
1955, to discharge the central banking responsibilities including
guiding the development of the embryonic domestic financial
sector. Since inception, there has been a significant growth in
both the number and activities of the domestic financial
institutions.
2. Commercial banks( Class A): A commercial bank is a type of bank
/ financial institution that provides services such as accepting
deposits, making business loans and offering basic investment
products, commercial bank can also refer to a bank, or a division
of a large bank, which more specifically deals with deposit and
loan services provided to corporations or large/middle sized
business as opposed to individual members of the public/small
business- retail banking or merchant banks. At present there are
33 commercial banks in Nepal.
3. Development bank( Class B): The bank which is established for
the development of different sectors like industrial, agricultural,
infrastructural etc by imitating the modern system and
methodology through financial, technical and administrative
assistance is known as development bank. Development banks
in Nepal are playing vital roles for the development of economy
status of Nepal. Nepal has nationalized and private banking.
There are 70 development banks in Nepal.
4. Finance companies( Class C): The history of financial institutions
is not very old. When banking sector started carrying out current
activities of financer companies was established and they

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expanded at a rapid pace in the developed countries, UK, and
USA in 1960. In the context of Nepal, there were few insurance
companies and karmachari sanchaya kosh working as non-
banking financial institution before enactment of finance
company act 2042. Need of finance company act was felt
because unauthorized sector was collecting savings from the
commom public in the name of upahar and dhukuti
programmes. Considering peoples’s interest in such
programmes, benefit of mobilizing such savings in productive
sector, banking sectors inability to carry out capital market
activities and to meet consumers need for credit, government
felt the need of finance companies and introduced finance
company act, 2042. However, no finance company set up till
2049 because the act came into being only in 2049 with some
amendments. At present there are 44 finance companies in
Nepal.
5. Micro credit development bank(Class D): Nepal is a land locked
developing country. Many people (38%) of Nepal are under
poverty region. Most of the poor people lives in rural areas and
have little opportunity. Micro finance (Micro credit
development bank) could help poor people who do not have any
collateral, but a willingness to work and a desire to do some
business activities from which he/she will acquire employment
as well as income. At present there are 41 micro credit
development banks in Nepal.
1.5 ECONOMIC FUNCTION OF BANKS

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The following points highlight the top four functions of banks. The
functions are: 1. Collection of the savings of the community 2.Loans
and investment 3. Creation of money 4. Other functions.
1. Collection of the savings of the community: Nowadays people
do not keep their savings at home. They deposit them in banks.
Thereby, the risk of loss ( from theft,etc) is avoided. Moreover,
some interest is earned. There are different kinds of deposits.
Some are current deposits. The interest paid on such deposits is
either very small or nil. Some deposits are withdrawals after a
fixed period (one year, two year,etc) or are subject to certain
fraction of the sums deposited etc). such deposits are called
time deposits. There are different names for the different
varieties of time deposits. E.g. fixed deposits, savings deposits,
etc. Time deposits earn higher rates of interest.
2. Loans and investments: Banks lend money traders, industrialists
and other persons. Lending is done through a variety of
methods. Sometimes an account is opened in the name of the
borrower and he is allowed to draw cheques on it. A man having
an account may be given the right to draw more money than
what he has in the account. This is known as overdraft facility. A
bank may also lend money by discounting a bill of exchange or a
hundi. Banks invest money on shares and debentures of
companies and on government promissory notes. They lend
money to industrial concerns against the security of government
promissory notes, shares, debentures, gold, goods in course of
manufacture etc. Loans are also given to private individuals
against GP notes, shares, debentures, life insurance policies and
gold.
3. Creation of money: Formerly, banks could print and issue notes
payable by them on demand. The notes were used as a medium

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of exchange. Nowadays only the central bank of the country can
issue notes. Banks, however can give loans in excess of the
money deposited with them. Cheques can be drawn against
such loans and the cheques can be used as media of exchange.
Thus, banks can create money.
4. Other functions: Commercial banks perform various other
functions. For example, they keep valuables in safe custody:
shares, debentures, GP notes etc and for the payment of
insurance premium, bills etc. they also act as executors and
trustees of wills; and exchange currencies of different countries
for one another.
1.6 LIST OF COMMERCIAL BANKS IN NEPAL
1. Nepal bank limited
2. Agriculture development bank limited
3. Nabil bank limited
4. Nepal investment bank limited
5. Standard chartered bank Nepal limited
6. Himalayan bank limited
7. Nepal SBI bank limited
8. Nepal Bangladesh bank limited
9. Everest bank limited
10. Kumari bank limited
11. Laxmi bank limited
12. Citizens bank international limited
13. Prime commercial bank limited
14. Sunrise bank limited
15. Century commercial bank limited
16. Sanima bank limited
17. Machhapuchhre bank limited

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18. NIC asia bank limited
19. Global IME bank limited(in merger process with janata bank
Nepal limited)
20. NMB bank limited
21. Prabhu bank limited
22. Siddhartha bank limited
23. Bank of Kathmandu limited
24. Civil bank limited
25. Nepal credit and commerce bank limited
26. Janata bank Nepal limited(in merger process with global IME
bank limited)
27. Rastriya banijya bank
28. Megha bank Nepal limited
1.7 INRODUCTION OF NIC ASIA BANK LIMITED
NIC ASIA Bank has its antecedents in NIC bank which was
established on 21st
july 1998. The bank was rechristened as NIC asia
bank after the merger of NIC bank with bank of asia Nepal on 30th
june 2013. This was a historic merger in the annals of Nepalese
financial landscape as the first of its kind merger between two
successful commercial banks in the country. Today, NIC asia has
established itself as one of the most successful commercial banks
in Nepal.
During the post merger integration phase, NIC asia managed the
transition very smoothly receiving accolades from the regulators as
well as the stakeholders, paving the way for other mergers and
consolidation in the Nepalese financial sector. After the merger,
NIC asia was recognized as “bank of the year 2013 nepal” by the
banker, financial times, uk. This is the second time that the bank

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was recognized with this precious award, the previous occasion
being in 2007.
NIC asia bank is now, one if the largest private sector commercial
banks in the country in terms of capital base, balace sheet size,
number of branches, ATM network and customer base. The bank
has 293 branches, 55 extension counters, 41 branch less banking
and 319 ATMs across Nepal with a network covering all major
financial centers of the country. The bank strongly believes in
meritocracy, transparency, professionalism, team spirit and service
excellence. These core values are internalized by all functions
within the bank and are reflected in all actions the bank takes
during the course of its business. The vision of this bank is to ensure
creation of optimum values for all the stakeholders. Its mission is
to be a bank of 1st
choice for all the stakeholders.
The directors of the bank are eminent personalities with vast
experience in business and the financial sector. The board of
directors is fully committed to a high standard of corporate
governance, which among others encompasses the principles of
full disclosure and transparency, social responsibility and
accountability, “zero tolerance” compliance culture, business and
customer confidentiality, intolerance of conflict of interests and an
independent management. The board comprises of the following
directors:
Mr. Tulsi ram Agrawal Chairman
Mr. Ram chandra sanghai Director
Mr. Rajendra aryal Director
Mr. Binod kumar pyakurel Director
Mr. Ganesh man Shrestha Director
Mr. Trilok chand agrawal Director

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The bank is run by professionals having sound experience and exposure
in commercial banking in Nepal as well as in international markets. The
“Management Committee” of the Bank comprises of the following senior
staff members:
S.N. Name of MANCOM
Members
Functional Title
1 Mr. Roshan K. Neupane Chief Executive Officer
2 Mr. Sudhir Nath Pandey Deputy Chief Executive Officer
3 Mr. Santosh Kumar Rathi ACEO- Marketing Eco System
4 Mr. Rajesh Rawal ACEO-Strategy Enforcement Ecosystem
5 Mr. Kapil Dhakal ACEO- Performance Assurance and
Support Service Ecosystem
6 Mr. Jayendra Rawal ACEO-Strategy Enforcement Ecosystem
7 Mr. Dipendra Bahadur
Rajbhandari
Chief Risk Officer
8 Mr. Arjun Raj Khaniya Chief Business Officer
9 Mr. Bishal Sigdel Chief Experience Transformation Officer
10 Mr. Dinesh Bhari Head Legal
11 Mr. Prakash Baral Chief Credit Officer
12 Mr. Raju Prasad Adhikari Head Internal Audit
13 Mr. Deepen Karki Company Secretary
The bank’s corporate governance policy is directed not only
towards the regulatory and legal requirements, but also towards
adherence to best business practices, transparency and disclosure
to the stakeholders. The bank has established a culture of best
practices in corporate governance. The bank’s corporate
governance framework is based on effective independent board
that is not involved in day to day management, and the
constitutions of different board committees with independent
directors to oversee critical issues.

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The bank has adopted three core principles of corporate
governance i.e. integrity, transparency and fairness. Good
corporate governance has been an integral part of the bank’s policy
in order to safeguard the interest of its shareholders and
stakeholders, and for providing the highest level of service to its
customers.
During the review period, the bank has formulated and
implemented “Corporate governance policy 2015” which shall
further strengthen the bank’s corporate governance practices and
values across all levels and activities of the bank. The main
objectives of the policy are as follows:
 To lay down a framework for achieving the vision, mission and
objectives of the bank in an effective and efficient manner.
 To lay down a foundation for sound organizational
development, planning succession, control and performance.
 To lay down a comprehensive framework that instills,
monitors, reviews and reacts to pertinent corporate
governance issues so as to protect the legitimate interest of
all the stakeholders.
 To ensure that all activities of the bank are carried out in due
compliance with applicable acts, regulations and directives
and
 To lay down a broad framework for formulation of other
policies, manuals and guidelines of the bank.
In line with Nepal rastra bank’s direction, a separate
corporate governance unit comprising of following members
has been formed:

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ACEO Coordinator
ACEO Member
Head legal Member
Chief financial officer Member
Manager- branding and CSR Member
Head-internal audit Member secretary
As a responsible corporate citizen of the country, the bank
has been involved in contributing to the society in various as
a part of its corporate social responsibility (CSR). In order to
promote and focus on CSR activities the bank has established
a charitable foundation called NIC asia foundation. The bank
has committed to pledge 1% of its net profit every year to the
NIC asia foundation for promoting various CSR related
activities.
In the past, the NIC asia foundation has carried out various
activities including but not limited to distributing disaster
relief packages to the victims of various disasters,
contributing to the prime minister relief fund, organizing
health camps, organizing blood donation camps, providing
support to old ages homes and orphanages, providing
scholarships to the needy students etc. A significant number
of people have been benefitted, directly or indirectly by the
activities carried out by the foundation. The foundation plans
to continue the same in the future as well.

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CHAPTER 2: DATA PRESENTATION,
ANALYSIS AND CONCLUSION
2.1 RATE OF INTEREST PROVIDED BY NIC ASIA BANK LTD
NIC asia bank limited offer education loan, residential home loan, auto
loan, SME loan offer, personal loan etc with customer affordable lending
rates. Further, the bank provides exciting interest rates on saving
deposits, fixed deposits, recurring deposits, foreign currency deposits
etc.
Current interest rate
Savings Deposits Minimum
Balance(NPR)
Rate(% p.a.)
Karmashil bachat
khata
- 4.5
Youth savings account 100 4.5
Remit savings account 100 4.5
Sulav bachat khata 500 4.5
Little star savings
account
500 4.5
Life savings account 10000 4.5
Nari Shakti bachat
khata
- 4.5
Happy savings
account
1000 4.5
Shareholders savings
account
100 4.5
Share shuvidha
bachat khata
500 4.5

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Special savings
account
5000 4.5
Super special savings
accounts
10000 4.5
Super payroll account - 4.5
Premium savings
account
25000 4.5
Senior priviledged
saving account
- 4.5
Samrakchyak bachat
khata
- 4.5
Krishak Samriddha
bachat khata
- 4.5
Swabalambi nari
bachat khata
- 4.5
Samajik surakshya
bachat khata
- 4.5
EPS korea bachat
khata
- 4.5
Online bachat khata - 4.5
Samunnati bachat
khata
- 4.5
Samunnati plus
bachat khata
1000 4.5
Social security relief
account
- 4.5
Bidhyarthi bachat
khata
- 4.5
Premium samunnati
bachat khata
1000 4.5

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New premium
samunnati bachat
khata
1000 6.5
Chamatkarik bachat
khata
1000 6.5
Chamatkarik online
bachat khata
- 6.5
Babu nani bachat
khata
- 6.5
Baideshik rojgar
bachat khata
500 6.5
Udhyamshil Bachat
khata
500 6.5
Chamatkarik bachat
khata-silver
1000 6.5
Chamatkarik bachat
khata-gold
25000 6.5
Chamatkarik bachat
khata-diamond
100000 6.5
Chamatkarik jestha
nagarik bachat khata-
silver
1000 6.5
Chamatkarik jestha
nagarik bachat khata-
gold
25000 6.5
Chamatkarik jestha
nagarik bachat khata-
diamond
100000 6.5
Chamatkarik nari
bachat khata-silver
1000 6.5
Chamatkarik nari
bachat khata-gold
25000 6.5

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Chamatkarik nari
bachat khata-
diamond
100000 6.5
Chamatkarik talab
bachat khata
- 6.5
Chamatkarik babu
nani bachat khata
- 6.5
Chamatkarik
bidhyarthi bachat
khata
- 6.5
Chamatkarik
udhyamshil bachat
khata
500 6.5
Chamatkarik
baideshik rojgar
bachat khata
500 6.5
Chamatkarik
swarojgar bachat
khata
- 6.5
Samriddha Nepal
sukhi nepali bachat
khata
100 6.5
Chamatkarik bachat
khata-silver(for FD)
- 6.5
Chamatkarik bachat
khata-gold(for FD)
- 6.5
Chamatkarik bachat
khata-diamond(for
FD)
- 6.5

24. Page | 24
Chamatkarik fixed deposit
( 3 months upto 1 year)
Minimum
balance
Interest rate(p.a.)
Institutional Individual
Fresh Renewal
Chamatkarik fixed deposit-
silver
100000 8.50% 8.60% 9.25%
Chamatkarik fixed deposit-
gold
1000000 8.50% 8.60% 9.25%
Chamatkarik fixed deposit-
diamond
2500000 8.50% 8.60% 9.25%
Other fixed deposits Minimum
balance
Interest rate(p.a.)
Institutional Individual
Fresh Renewal
3 months upto 10 years NIL 8.50% 8.60% 9.25%
FCY Deposits Minimum
balance
Rate (%p.a.)
USD sulav bachat khata USD 25 2.60%
USD savings accounts USD 25 2.60%
USD super saving account USD 100 2.60%
USD premium savings
account
NIl 2.60%
FCY fixed account Nil Negotiable
Other deposits Minimum
balance
Rate(%p.a.)
NIC asia sikhshya kosh and
sikhshya kosh plus account
100 Upto 4.5%
Recurring deposit 500 9.25%
Call deposit Negotiable(subject to NRB directive)
Recurring deposit Interest rate(p.a.)

25. Page | 25
Chamatkarik recurring
deposit (individual)
9.25%
Others
Fixed deposits Institutional
(%p.a.)
Personal(%p.a.)
1 month upto 10 years-
fresh
8.50 9.25%
1 month upto 10 years-
renewal
8.60 9.25
Others
Foreign currency deposit Minimum
balance
Interest rate
USD fixed deposit Nil Negotiable
Lending rates
Retail Premium(% p.a.)
Auto loan Upto 7.00
Home loan
a. Home loan OD Upto 7%
b. Home equity loan Upto 7%
c. Residential home loan Upto 7%
Gold loan Upto 7%
Sajilo subidha( Term loan) Upto 7.00
Sajilo subidha(Overdraft) Upto 7.00
Sajolo karja Upto 7.00
Gold loan-demand Upto 7.00
Gold loan-overdraft Upt0 7.00
Loan against share Upto 7.00
Personal loan Upto 7.00
Education loan Upto 7.00
Foreign employment loan Upto 7.00
Loyalty financing facility Upto 7.00

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Real estate loan Upto 7.00
Chamatkarik sawari karja Base rate plus 0.12% to
1.32% premium
Chamatkarik ghar jagga karza Base rate plus 0.12% to
2.52% premium
SME Premium(%p.a.)
Fast track business loan Upto 7.00
Priority business loan Upto 7.00
Premium business loan Upto 7.00
Commercial agricultural and
livestock loan
Upto 7.00
Corporate Premium(%p.a.)
Import credit/TR. Loan Upto 7.00
Overdraft/Cash
credit/working capital loans
Upto 7.00
Term loan Upto 7.00
Other short term working
capital loans
Upto 7.00
Deprived sector lending Premium(% p.a.)
Deprived sector-direct Upto 7.00
Deprived sector-indirect Upto 7.00
Others Premium(%p.a.)
Export credit Upto 7.00
Loan against own FDR Upto 7.00
Loan against other bank’s
fixed deposit receipt
Upto 7.00
Loan against 1st
class bank
guarantee
Upto 7.00
Loan against government
securities(max draw down
80%)
Upto 7.00
Agricultural loans for youths Upto 7.00

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Equipment financing Upto 7.00
FCY loan Upto 1 year LIBOR +4
Notes:
 Base rate for the month shrawan 2076 is 9.3%.
 Interest spread rate for the month shrawan 2076 is
5.05%.
 Rate on default account and watch list account may
vary from the above published rates.
 Interest rate on consortium loans shall be as decided by
consortium.
 Interest rates in specified loans directed by Nepal rastra
bank(like agricultural loan for youth, refinance, export
oriented units in FCY, deprived sector loans to
minorities, senior citizen, differently abled, widow, war
victims, etc) shall be as stated by Nepal rastra bank
circular/directive.
 Penal interest rate shall be charged at the rate of
additional 2% p.a. on principal overdue and/or interest
overdue on loan amount or deal or contract
outsourcing from the time interest and/ or principal
becomes overdue on the respective loan amount or
deal or contract.
 In case of temporary overdrawn account highest
published rate for the amount excess to the limit shall
be charged.
 Other interest rates remains unchanged.

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2.2 CREDIT FACILITIES OF NIC ASIA BANK LIMITED
1. Residential home loan: It is an attractive financing scheme bundled
with special features to purchase/construct your dream house and live
with family happily ever after. You can explore residential home loan for
following purpose:
 Purchase of house
 Construction of house
 Repair/ Renovation and re-construction of house
 Refinancing/SWAP of existing home loan
Feature:
 Competitive interest rate
 Credit facility as term loan upto 15 million
 Flexible loan tenure upto 50 years
 Easy documentation
 Hassle free loan processing
2. Auto loan: NIC asia auto loan is an exclusive financing option to “move
in style” by owing a vehicle of your own choice. With an aim to enhance
and upgrade your automobile experience, there are varieties of auto
loan scheme available with simple loan processing and minimum
turnaround time.
Feature:
1. Competitive interest rate
2. Attractive financing limit
*Upto 50% of VAT Bill for individuals
*Upto 80% of VAT bill for firm/companies
3. Flexible loan tenure, upto 15 years

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4. Easy documentation
5. Hassle free loan processing
6. Loan facility for purchasing various type of vehicles-
1. Private/red plated vehicle
2. Semi-commercial vehicle
3. Green plated vehicle
4. Commercial/black plated vehicle
3. Loan against mortgage property: It is an attractive financing scheme
bundled with special features to finance your personal requirements.
Feature:
 Competitive interest rate
 Credit facility as term loan and/or overdraft/demand loan
 Flexible loan tenure upto 50 years
 Easy documentation
 Hassle free loan processing
4.Loan against shares: With NIC asia bank’s loan against shares, you can
get an overdraft/demand loan facility against the securities of shares.
This is an instant solution if required cash within a short period of time
with simple documentation and processing.
Feature:
 Loan against pledge of shares of acceptable traded companies
 Attractive interest rate
 Fastest loan processing
 Hassel free and easy documentation
5.NIC asia personal loan(NAPL): NIC asia personal loan is a non-collateral
based loan scheme especially designed to facilitate Nepalese salaried

30. Page | 30
individuals and professionals to meet their individual financial
requirements; offers lower monthly obligation and hassle-free services
along with fastest service delivery to our valued customers.
Feature:
 Credit facility as term and overdraft/demand loan in monthly
payment
 Minimum loan amount of NPR 0.3 million to maximum upto NPR
1.5 million
 Loan tenure upto 5 years, subject to the annual review
 Competitive interest rate
 Easy documentation
 Hassle free loan processing
5.NIC asia education loan: NIC asia education loan is a collateral based
loan specially designed to facilitate Nepalese students to meet their
financial requirements to pursue higher education above +2 level in
Nepal or abroad.
Feature:
 Loan amount of minimum NPR 0.3 million to maximum NPR 10
million
 Term loan facility with a tenor of upto 15 years excluding
moratorium period
 Upto 100% financing of total cost considered subject to valuation
of collateral.
 Accept collateral type
*Land and/or building
*Fixed deposit
 Flexible repayment option

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 Hassle free processing
 Competitive interest rate
6.Foreign employment loan: Now don’t worry about the expenses to go
abroad for employment. NIC asia bank introduces foreign employment
loan, a new type of collateral based loan targeted to people who are
going to foreign country for employment purpose.
Feature:
 Competitive interest rate
 Credit facility as term loan and overdraft/demand loan
 Loan tenure upto 5 years, subject to the annual review
 Easy documentation
 Hassle free loan processing
7.Gold loan: NIC asia bank introduces NIC asia gold loan, one of the
easiest and fastest loan schemes of the banking industry. NIC asia gold
loan offers hassle free credit facility with flexible repayment options to
our valued customers. Major features of NIC asia gold loan are:
Loan limit: Minimum NPR 30000/- and maximum NPR 50 million
Financing up to:
 70% against pledge of gold ornaments
 80% against pledge of fine gold bar and gold coins
Free insurance coverage of pledged gold
Facility type: Demand loan and overdraft
Interest rate: As published by the bank payable on quarterly basis(as per
nepali calendar)
Period: Maximum 1 (one) year (if required- to be renewed every year
from the date of maturity)

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Partial payment: Allowed
Eligibility:
 Nepali citizens: 18 years and above
 Duly registered companies
Available at following branches:
Inside valley Outside valley
1 New road khichapokhari
branch
1 Banepa branch
2 Kaushaltar branch 2 Dharan main branch
3 Bouddha branch 3 Janakpur branch
4 Balaju branch 4 Pokhara branch
5 Jwalakhel branch 5 Butwal branch
6 New baneshwor branch 6 Dhangadhi hospital line
7 Corporate office branch,
Thapathali
7 Birtamode branch
8 Mahendranagar branch
9 Biratchowk branch
10 Gaighat branch
11 Bhairahawa branch
12 Biratnagar branch
13 Nepalgunj branch
14 Birgunj branch
15 Urlabari branch

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References
http://www.nicasiabank.com
https://en.wikipedia.org/wiki/NIC_ASIA_BANK
https://www.academia.edu.np
https://www.investopedia.com.np
https://www.scribd.com
https://www.slideshare.net