CHAPTER -1

INTRODUCTION

1.1 Context information

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.lt 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 engage 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.

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.

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 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, and the arrangement of import-export and
development of Nepalese 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 state 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.

1.2 Purpose of the study

1.2.1 General Purpose

This report is prepared primarily to fulfill the partial requirement of obtaining
bachelor degree under Tribhuvan University and to analyze the credit facilities of Nic
Asia Bank.
1.2.2 Specific Purpose
 To find out the present credit facilities of the Nic Asia bank.
 To gather knowledge about the loan services of Nic Asia bank.
 To know about the deposit and loan condition of Nic Asia bank.
 To suggest and recommend the measures on the basis of the study of profitability of
Nic Asia bank.

1.3 Significance of the study

This study will be useful to the following stakeholders of the Bank:
 To the investors. i.e. shareholders
 To the management of bank (management committee)
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 To the customers.
 The study will give the clear picture of the account statement and credits
facilities of the bank.
This study will be significant to the researcher also:
 To get depth knowledge of bank.
 To get valuable findings of research.

1.4 Statement of the problem

This study is conducted to obtain overall view of credit management of the sampled
bank. It is one of the most important and complicated functions performed by the
bank. Each bank has credit department and loan administration to conduct, monitor
and supervise credit operation. The administration of a particular loan ends when it is
recovered. But the process never ends until the bank exists.
Nepal is a country which is made up of villages and rural areas mostly and where
there is predominance of agriculture sector. It is difficult to solve the credit problems
of the country through commercial bank and which are relevant to intramural and
agriculture is to overcome these change.
Commercial banks act as an investment intermediary linking the savers and users of
capital. Capital formation is thus regarded as one of the indispensable functions
executed by any commercial bank. Capital formation is done through credit
advancement and its management. Credit disbursement and credit recovery is the
prominent feature of credit management
The researchers are made shortly to answer the following questions:-
 What are the facilities of saving and providing credits of NIC Asia Bank?
 Procedures of credits facilities of NIC Asia Bank?

1.5 Limitation of the study

As the above is being carried out in a partial fulfillment of the requirement for the
degree, Bachelor of Business Administration it possesses number of limitations of its
own kind. Some of the limitations of the study are as follow:
 This study has limited to the study of Credit Facilities of Nic Asia Bank out of 21
commercial banks.
 This study is based on primary and secondary data

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 Simple techniques had been used in analysis.
 The records of limited are used to analyze the performance.
 This study only focuses on profitability of the bank.
The study has been done according to the information provided by the bank. And
bank and the information provided by them had been believed to be true.

1.6 Literature Review

A literature review is a comprehensive summary of previous research on a topic. The
literature review surveys scholarly articles, books, and other sources relevant to a
particular area of research. The review should enumerate, describe, summarize,
objectively evaluate and clarify this previous research.

Banks and financial institutions are the vehicles through which public deposits are
mobilized in various development activity i.e. Agricultural, Industry. Trade,
Commercial Institution like commercial banks, development banks, financial
companies and various micro-financing institution with different model.”( Johnson,
1940: 130)

Credit administration involves the creation and management of risk assets. The
process of lending takes into consideration about the people and system required for
the evaluation and approval of loan request, negotiation of terms, documentation,
disbursement, administration of outstanding loans and workouts, knowledge of the
process and awareness of its strength and weaknesses are important in setting
objectives and goals for lending activities and for allocating available funds to various
lending functions such as commercial, installment and mortgage portfolios (Johnson,
1940: 132).

The investor or whether banks, financial institutions, individuals, private or

government sector, must not take the proposal by making decision without having
adequate judgment because sometimes they perform out of norms, related studies,
policies and techniques. A project appraisal will best viable only if it has accessed
through conscious analysis as well as through thoroughly investment decisions to
make its macro and micro level viability effective.” (NRB, 2058: 125)

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“A Loan is Financial Assets resulting from the delivery of cash or to the assets by a
lender to a borrower in return for an obligation repay on specified date or dates or on
demand.” (Johnson, 1940: 45)
Mr. Dipendra Joshi who has been already completed their research on this topic for
their Bachelor of Business Administration (BBA) of Pokhara University. He did this
research of a specific branch of Mahendranagar Branch. Joshi(2019)

1.7 Research Methodology

Research methodology is the specific procedures or techniques used to identify,
select, process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall validity
and reliability. The methodology section answers two main questions: How was the
data collected or generated? How was it analyzed?

1.7.1 The research design

The major tool to analyze data is selected to commercial bank with the nature of data
and meets the Nepalese investors need. The tools and technique, which is suitable
elsewhere, may not be appropriate in our context. The information presented is
represented with tables. The tables will be helpful notice to notice the information at
glance and also assist to predict the future level.

1.7.2 Population and Sample

In Nepal there are 21 commercial banks. There are many banks, which are actively operating
their activities in market. It is not possible to study all of them regarding the research topic.
Therefore among them, one reputed bank is taken as a sample bank i.e. NIC ASIA BANK
LIMITED from population for this research study.

1.7.3 Sources of Data

The main sources of data for this study are secondary data. According to the
requirement, published balance sheets, profit and loss account and other related
statements of account. For the purpose of study, various related books, booklets
magazines, journals, newspapers and thesis made in this field have been referred.
Personal queries, discussion and consultations are also done.

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1.7.4 Data Collection Technique
Both the primary and secondary data were used for the preparation of this report.
Necessary and required data were collected from the corporate department of NIC
Asia Bank. Concerned personnel of the respected department were in contact. For
primary data interview, field visit, and personal observation have been considered for
gathering the information. And for secondary data, annual report of NIC Asia Bank,
related academic books and literature, bank’s internal reports, files and others have
been considered for making this report authentic and more realistic. The concerned
personnel provided all the consolidated data records as per the requirement of the
report. The data compiled were classified and tabulated to the need of the study

1.7.5 Types of Data

Data collection is the most essential factors in report writing. Data collection is the most
important for the project work. There are two types of data which use in data collection. The
types of data are:-
i. Primary Data
Primary Data are those types of data which is originally obtained through first- hand
investigation. It includes information collected from interview, observation, survey,
questionnaire, focus group and measurements.

ii. Secondary Data

Secondary data is the data that is collected by someone else not by users. The data
collected by government department, organizations, and semi-government and private
publications are the sources of the secondary data.
In this research, primary and secondary data are used to bring more accuracy.

1.8 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:
 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.

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 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.

 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.
 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.

 Collection and payment Of credit instruments: in modern business, different types

of credit instruments such as the bill of

Exchange, promissory notes, cheques etc. are used. Banks deal with such
instruments. Modem banks collect and pay different types of credit instruments as
the representative of the customers.
 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.
 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.
 Remittance of funds: banks help their customers in transferring funds from one
place to another through cheques, drafts, etc.
 Credit cards: A credit card is card that allows 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

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 amount of the purchase to the card provider over a period of time and with
interest.
 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.

1.10 Economic Functions of Bank

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.

 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.
 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.

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 Creation of money: Formerly, banks could print and issue notes payable by them
on demand. The notes were used as a medium 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.

 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.

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 CHAPTER:2
DATA PRESENTATION AND ANALYSIS

2.1 Introduction of NIC Asia Bank

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 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, balance sheet size, number of branches, ATM
network and customer base. The bank has 359 branches, 106 extension counters, 81
branch less banking and 473 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
choice for all the stakeholders.

The bank is run by professionals having sound experience and exposure in

commercial banking in Nepal as well as in international markets. Mr. Roshan Kumar
Neupane is the CEO of the NIC Asia Bank whereas Mr. Sudhir Nath Pandey and Mr.
Santosh Kumar Rathi are the Deputy Chief Executive Officer. Its management team
is very creative and effective. During the review period, the bank has formulated and
implemented "Corporate governance policy 2015" which shall further strengthen the

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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.

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

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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2.2 Rate of Interest Provided by NIC Asia Bank Limited
NIC Asia bank limited offer education loan, residential home loan, auto loan, SME
loan offer, personal loan etc with customer affordable lending rates. During
preparation of report this bank is providing 11% interest rate for fixed deposit
whereas 8.42% interest rate for the saving accounts. Further, the bank provides
exciting interest rates on saving deposits, fixed deposits, recurring deposits, foreign
currency deposits. Some of the popular savings accounts of this bank are as the
follows:
i. Sarbashrestha Suniya Maujdat Khata
This is the most popular saving account of the bank where most of the people are
opened their accounts for saving purpose. It's not need to have deposit some
minimum balance. It is specially designed for the general public of all income
levels, age groups and gender. Currently it is providing 8.42% interest to their
customers. Required documents are; PP size photo and original citizenship/voter
ID/Driving License. In case of NRN, NRN card.
ii. Sarbashrestha Jestha Nagarik Bachat Khata
Sarbashrestha Jestha Nagarik Bachat Khata is an interest bearing saving account
scheme targeted to the senior citizen of 55 years and above. Required documents
are; PP size photo and original citizenship/voter ID/Driving License. In case of
NRN, NRN card.

iii. Sarbashrestha Remittance Bachat Khata IPO

This is for Nepalese workers working abroad through work pemits issued by
government of Nepal. The securities board of Nepal has implemented securities
issuances regarding IPO quota allocation for Nepalese workers. Therefore,
Nepalese workers working abroad through works permits issued by the
government of Nepal shall be eligible for a 10% quota of the total IPO. Required
documents are; PP size photo and original citizenship/voter ID/Driving License.
In case of NRN, NRN card.
Additional documents are required; valid visa of the concerned country, valid
work permit from the government of Nepal.
Some of the special accounts and rate of interest are showing by the help of
following tables:

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 Table no.2.1
LCY Muddati Khata
Interest
S.N. LCY Muddati Khata Rate
1 Sarbashrestha Muddati Khata-General 11.00%
2 Sarbashrestha Remittance Muddati Khata-General 12.00%
3 Masik Nichhep Khata 11.00%
Source by Nic Asia Bank web sites

Table no.2.2
Fixed Deposit Products
Interest Rate (per
Fixed Deposit Products Tenure annum)
Individual-General 3 Months to 5 Years 11.00%
Individual Mashik
Nichhep 3Months to 5 Years 11.00%
Individual-Remittance 3 Months to 5 Years 12.00%
Institutional 6 Months to 5 Years 9.00%
Source by Nic Asia Bank web sites

Table no.2.3
FCY Fixed Deposit
Rate (% per
FCY Fixed Deposit Minimum Balance annum)
As per NRB
Source by Nic Asia Bank web sites
Call Deposit (USD) Nil Directives
Call Deposit (EURO, GBP, JPY, As per NRB
AUD) Nil Directives

Table no.2.4
FCY Fixed Deposit

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 Normal NRN/Foreign
Rate (% per Intuition (%
FCY Fixed Deposit Tenure annum) per annum)
FCY Fixed Deposit 3 Months to 1 Year
Account (USD) for Individual, up to 7.25% Up to 8.25%
FCY Fixed Deposit 3 Months to 1 Year
Account (EURO) for Individual, up to 5.50% Up to 6.50%
FCY Fixed Deposit 3 Months to 1 Year
Account (JPY) for Individual, up to 3.90% Up to 4.90%
FCY Fixed Deposit 3 Months to 1 Year
Account (AUD) for Individual, up to 6.60% Up to 7.60%

Source by Nic Asia Bank web site

Deposit Note:
1. Interest Payment Frequency shall on a quarterly basis
2. For all fixed deposits (LCY and FCY) minimum tenure shall be 3 months for
Individual Depositors and 6 months for Institutional Depositors.
3. For Institutional Bidding Fixed Deposit (LCY and FCY), an additional 0.5%
interest rate shall be added to the rate mentioned above.
4. The interest rate on Akshyakosh Deposit shall be negotiable as per NRB
Directives.
5. For NRN Saving & FD (FCY) 1% additional rate shall be provided and the
tenure of FD shall be 1 year only.

Table no.2.5
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Lending Rates
Source by Nic Asia Bank web sites
Lending Rates
Retails Interest (% p.a.)
Auto Loan Base rate + Up to 5%
Home Loan Base rate + Up to 5%
a. Home Loan OD Base rate + Up to 5%
b. Home Equity Loan Base rate + Up to 5%
c. Residential Home Loan Base rate + Up to 5%
Gold Loan Base rate + Up to 5%
Loan Against Shares Base rate + Up to 5%
Personal Loan Base rate + Up to 5%
Educational Loan Base rate + Up to 5%
Foreign Employment Loan Base rate + Up to 5%
Loyalty Financing Facility Base rate + Up to 5%

Table no. 6
Lending Rates
Lending Rates Interest (% p.a.)

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 Floating Rate (% per
SME annum)
Fast Track Business Loan Base Rate + Up to 5%
Priority Business Loan Base Rate + Up to 5%
Premium Business Loan Base Rate + Up to 5%
Base Rate + Up to 2%
(Guided as per NRB
Commercial Agriculture and Livestock Loan Regulations)
Floating Rate (% per
Corporate annum)
Import Credit/TR.Loan Base Rate + Up to 5%
Overdraft/Cash Credit/Working Capital Loan Base Rate + Up to 5%
Term Loan Base Rate + Up to 5%
Other Short Term Working Capital Loan Base Rate + Up to 5%
Floating Rate (% per
Deprived Sector Lending annum)
Deprived Sector Lending Base Rate + Up to 5%
Floating Rate (% per
Others annum)
Export Credit Base Rate + Up to 5%
Loan Against own FDR Base Rate + Up to 5%
Loans Against Others Bank's Fixed Deposit Receipt Base Rate + Up to 5%
Loan Against 1st Class Bank Guarantee Base Rate + Up to 5%
Loan Against Government Securities (max
drawdown 80%) Base Rate + Up to 5%
Equipment Financing Base Rate + Up to 5%
FCY Loan As per NRB Directive
Source by Nic Asia Bank web sites
Notes:
 Base rate for the month Magh 2079 is 10.71%
 Interest spread rate for the month Ashwin 2078 is 4.08%
 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 able, 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

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 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 remain unchanged.

2.3 Credit Facilities of NIC Asia Bank

Credit is financial assets resulting from the delivery of cash or other assets by a lender
to a borrower in return for an obligation of repay on specified date on demand. Credit
is the amount of money lent by the creditor (bank) to the borrower (customers) either
on the basis of security or without security. Sum of the money lent by a bank, is
known as credit (Oxford Advanced Learners Dictionary, 1992: 279). Credit and
advances is an important item on the asset side of the balance sheet of a commercial
bank. Bank earns interest on credits and advances, which is one of the major sources
of income for banks. Bank prepares credit portfolio, otherwise it will not only add bad
debts but also affect profitability adversely (Varshney and Swaroop, 1994: 6)

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. The current interest rate of home loan is 14.99% up to 10
years. You can explore residential home loan for following purpose:
 Purchase of house
 Construction of house
 Repair/ Renovation and re-construction of house
 Refinancing of existing home loan
Feature:

 Competitive interest rate

 Credit facility as term loan up to 15 million
 Flexible loan tenure up to 50 years
 Easy documentation
 Hassle free loan processing

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 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:

 Competitive interest rate

 Attractive financing limit

• Up to 50% of VAT Bill for individuals

• Up to 80% of VAT bill for firm/companies

 Flexible loan tenure, up to 15 years

 Easy documentation
 Hassle free loan processing
 Loan facility for purchasing various type of vehicles-
 Private/red plated vehicle
 Semi-commercial vehicle
 Green plated vehicle
 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 up to 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

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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 salaries 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 up to NPR
 1.5 million
 Loan tenure up to 5 years, subject to the annual review
 Competitive interest rate
 Easy documentation
 Hassle free loan processing

6. NlC 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 levels 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 up to 15 years excluding moratorium period
 Up to 100% financing of total cost considered subject to valuation of
collateral.
 Accept collateral type

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 • Land and/or building
• Fixed deposit
 Flexible repayment option
 Hassle free processing
 Competitive interest rate

7. 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 up to 5 years, subject to the annual review
 Easy documentation
 Hassle free loan processing

8. 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)

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Period: Maximum 2 (two) year (if required- to be renewed every year from the date of
maturity)
Partial payment allowed

Eligibility:

 Nepali citizens: 18 years and above

 Duly registered companies
Available at following branches:

CHAPTER: 3

CONCLUSION AND ACTION IMPLICATIONS

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3.1 Conclusion
This study has been analyzed the Credit Facilities of NIC Asia Bank Limited. Credit
facilities are playing very important role in banking system. Most of the individual,
stakeholders, investors and business are financing from the bank to run their works
properly. In above report have been already describe about different types of credits
facilities by the NIC Asia Bank to their customers. Forexample: Personal Loan,
Education Loan, Auto Loan, Home Loan, Foreign Employment Loan, Fast Track
Business Loan, Priority Business Loan, Working Capital Loan, Loans Against Others
Bank's Fixed Deposit Receipt and etc.

This bank is also provide different types of saving accounts in that customers are
easily save their amounts and also gets handsome interest rate from that. Some of the
popular accounts are:Sarbashrestha Sunya Maujat Bachat Khata, Sarbashrestha
Remittamce Bachat Khata-Ambassador, Sarbashrestha Talab Bachat Khata-The NIC
ASIA Goodwill Ambassador and etc.
Credit facilities are also quietly important to developed the country economy and
makes the prosper Nepal. Most of the business are running from the bank loan and
provides different goods and services to the general public.

3.2Action Implications
The action and implication of Credit Facilities analysis of NIC Asia Bankwill provide
more services to the public and businessman to survive their proper daily work. It is
most effective to run the business and economy of the country. Some of the action
implications are as follows:
 It is help to run the business properly and providing chance of employment in
the country.
 It is help to the general people to save their money with handsome interest
rate.
 It is help to the customers to provide different types of loan to make them
satisfied.
 This bank is strictly maintaining their liquidity ratio and easily provides cash
to their customers.
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  The affordable interest of loan will helps to survive their business in the
industry.

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 www.nicasiabank.com
 www.scribd.com

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