How are people benifited from banking transactions?Bank Loans and Interest.Watch video

Bank Loans

Banking transaction has played vital role in many people's life.Whatever and however the business or any small investments are started,Banks are always there to help you in need.

What can Bank do for you?

According to your Business plan and Investment,Bank provides Loan according to your necessity under limited criteria.If you are willing to start some agricultural business,they will provide you agriculture loan,You are thinking to build a house,there will be housing loan available and so on..

Types of Loans

There are many kind of loans and may vary according to country.Normally bank allows these type of loans.

Agriculture Loan

Interest rate in Agriculture Loan is less in comparision to other.These kind of loan is generally provided to farmers who wants to start their earnings from farming and poultry.Government supports for such kind of loans and many of the people are benefited from this service.Interest rate and criteria vary from country to country.In context to Nepal, Interest rate is between 9-12%. Procedures to get this loan is mentioned below.

• Full description and plan about your business should be submitted to bank. 
• Location where you are going to start business. 
• Estimates of monthly income. 
• Documents which includes Citizenship card,Photos,papers of your property *(if amount of loan is more than 5 lacs) 

Business Loan

Its same as Agriculture loan but interest rate is little high.Normally between 11 to 13 percent(or more according to banks).Property valuation is necessary if loan has to be issued more than 5 lacs.Loan is provided according to the value of your property.Some banks provides 90% Loan amount of your property value.

• Documens needed to get Business Loan: 
• Full description and plan about your business should be submitted to bank. 
• Location where you are going to start business. 
• Estimates of monthly income. 
• Documents which includes Citizenship card, Photos. 
• Property valuation documents 

Housing Loan

While building house,Bank looks after your necessities.If you are sort of money to build house then,you can easily issue housing loan.Interest rate for such loans varies from 13-15%.Procedures to get housing loan.

• Photograph of the land where you are going to build house. 
• Approval letter from municipality or VDC to build house in your Land. 
• Securities. (May be land,collateral assets, ornaments) 

Personal Loan

Personal Loan does not need any description about why you are going to issue loan.But strong security must be submitted to Bank.Interest rate is too high than oter.it may vary from 13% to 17%.These type of loan is rarely provided by bank and recommendation is mostly appreciated.