LOAN
Q: How can I apply for a loan at MNBBL ?
A: You can apply for an MNBBL loan by visiting your nearest MNBBL branch. Alternatively, you can apply online through our loan application portal at https://www.muktinathbank.com.np/online/loan-application. The respective branch will contact you to proceed with the loan processing.
Q : How is the interest determined ?
A: The interest rate on any loan is made up of two parts: the bank's Base Rate plus an added Premium Rate. Base Rate is determined by the bank’s overall cost of funds and market conditions while
Premium Rate is assigned based on the borrower’s overall credit profile, repayment capacity, income stability, business strength, collateral and overall relationship history. Borrowers with stronger financial profiles and lower risk receive lower premium rates.
Q:What are the interest rates for Loans at MNBBL ?
A: Interest rate will be decided after analyzing your loan proposal, It also differs according to the loan you have applied for.Our interest rate can be reviewed in our web-page through https://muktinathbank.com.np/interest-rates
Q: What is EMI? How is it calculated?
A: EMI stands for Equated Monthly Instalments. This instalment comprises both principal and interest components. Your EMI would be calculated depending on the tenure you choose, to repay your loan. The EMI would be higher if you choose to repay within a shorter period as against a longer-term loan.
Q: How long can I take to repay the loan?
A: Repayment terms vary depending on the loan product . You can prepay or settle your loan early at any time, subject to minimal prepayment fees outlined in our Standard Tariff of Charges and Nepal Rastra Bank guidelines.
Q: What is the difference between OD and term loans ?
A: An Overdraft (OD) loan and a Term Loan mainly differ in how the funds are used and repaid. An OD loan provides a credit limit from which you can withdraw funds as needed and interest is charged only on the amount you use. It is ideal for managing short-term cash flow or working capital needs.
A Term Loan is disbursed as a lump sum for a specific purpose, such as purchasing a home, vehicle or equipment and is repaid in fixed installments over an agreed period. It is best suited for long-term financing needs.
Q: Do I need a guarantor for MNBBL Loans ?
A: Yes. A Personal or Corporate Guarantee required for getting Loans from MNBBL. An immediate family member can act as a personal guarantor. By signing the guarantee, the guarantor contracts to be legally responsible for the loan and assumes liability for repayment in the event of default.
HOME LOAN
Q: What is MNBBL Home Loan?
A: The Home Loan is a term loan that helps you purchase a ready-made home, buy land and construct a house or renovate/build your own home. The land and building being financed is generally taken as the Bank's primary security for the loan.
Q: How can I get a Home Loan?
A: You can apply if you want to purchase a ready home, purchase land and build a house or construct/renovate your own home. The land and building being purchased or constructed is generally taken as the primary security, so the loan is available to individuals who can offer such property and who meet the Bank's income and repayment criteria. If you are buying only land, you must commit to building a house on it within 5 years.
Q: What is the maximum loan amount and tenure?
A: Up to NPR 10 crores (up to NPR 3 crores under the "My First Home Loan" scheme), for a tenure of up to 30 years, provided your age does not exceed 70 years at loan maturity.
Q: How much collateral is required?
A: The land and building being purchased or constructed must be pledged as the primary collateral. The Bank finances up to 70% of the property value (up to 80% under "My First Home Loan"), so you generally need to fund the remaining portion yourself. Additional collateral can be taken if needed. Under "My First Home Loan", only homes up to 3,000 sq. ft. are eligible and rental income from the property is not counted.
Q: If I'm constructing a house, can I get an advance before construction is finished?
A: Yes. Up to 20% of the total estimated construction cost may be disbursed to you as an advance and in some cases the Bank may finance up to 100% of the construction cost, though the overall debt-to-equity position of the loan is generally kept within an 80:20 ratio.
Q: Is insurance required?
A: Yes. The mortgaged building/property must be insured (at least fire and earthquake) in the Bank's name and any goods purchased with the loan must also be insured in the Bank's favour. House insurance is optional if the land's fair market value alone covers the loan exposure, but becomes mandatory if repayment depends on rental income. You are responsible for paying and renewing the premium.
AUTO LOAN
Q: What is MNBBL Auto Loan?
A: The Auto Loan is a term loan that helps you purchase a new or used personal vehicle, including electric vehicles (EVs). The vehicle itself is taken as the primary security and priority financing terms are available for public EVs and eligible commercial vehicles.
Q: How can I get an Auto Loan?
A: Any individual purchasing a new or used personal vehicle (including EVs) can apply, subject to meeting the Bank's income and CIB requirements. Financing is also available for public EVs and for commercial vehicles of businesses affected by the Gen Z movement.
Q: What is the maximum loan amount and tenure?
A: Up to NPR 4 crores. Tenure is up to 7 years for new vehicles; for old/refinanced vehicles, tenure is counted from the date of manufacture, generally up to 7 years (up to 10 years in some cases), with longer tenures possible only with higher approval.
Q: How much collateral is required?
A: The vehicle itself which is registered in the Bank's name is the primary security, financed up to 60% of its value (up to 80% for public EVs and eligible commercial vehicles). Additional land and building collateral may be asked for in certain cases.
Q: Can I get a longer repayment period than the usual limit?
A: In some cases, yes. For old or refinanced vehicles, tenure can extend up to 10 years total from the date of manufacture, but this needs justification and approval from a higher-level authority within the Bank.
Q: Is insurance required?
A: Yes. The vehicle must carry comprehensive insurance endorsed in the Bank's favour for the loan period and you are responsible for paying the premium until the loan is repaid.
Can an NRI (Non-Residence Individual) avail of New Auto Loans from MNBBL?
A: Yes, with a local co-applicant.
PERSONAL LOAN
Q: What is MNBBL Personal Loan?
A: The Personal Loan is available as a Term Loan (PTL) or an Overdraft (POD), secured by mortgaged land, building or an apartment. It gives you access to funds for personal needs, either as a lump sum with fixed EMIs (Term Loan) or as a flexible, renewable credit line (Overdraft).
Q: How can I get a Personal Loan?
A: You can apply if you own a mortgageable land and building or apartment (with clear legal road/path access as per the Bank's Credit Policy) and meet the Bank's income and CIB requirements. It can be taken as a Term Loan or as a renewable Overdraft.
Q: What is the maximum loan amount and tenure?
A: Both the Personal Term Loan (PTL) and Personal Overdraft (POD) go up to NPR 1 crore each. Term Loan tenure is up to 20 years; Overdraft tenure is 1 year, renewable on review.
Q: How much collateral is required?
A: Mortgaged land and building or an apartment with clear legal access, valued as per the Bank's valuation guidelines. The Bank finances up to 50% of the property's value.
Q: Does my property need to have road access to qualify as collateral?
A: Yes. The mortgaged land, building or apartment must have clear legal road/path access, as required under the Bank's Credit Policy, to be accepted as collateral.
Q: Is insurance required?
A: Yes. The mortgaged property must be insured against fire and earthquake, unless the land's fair market value alone covers the loan exposure. You are responsible for paying and renewing the premium.
SHARE LOAN
Q: What is MNBBL Share Loan?
A: The Share Loan is an Overdraft or Demand Loan given against your listed shares, government bonds or mutual fund units. It lets individuals, firms and companies registered in Nepal borrow against their securities for share investment, working capital, portfolio management or other Bank-approved purposes.
Q: How can I get a Share Loan?
A: Individuals, firms and companies registered in Nepal who hold eligible listed shares, government bonds or mutual fund units in a DEMAT account can apply. The loan can be used for share investment, working capital, portfolio management or other Bank-approved purposes. Certain securities are not eligible (for example, shares of problematic banks/financial institutions, companies with negative net worth, delisted/unlisted or unaudited companies or securities with fewer than 180 trading days or with no AGM in the last 3 years). You must also not be blacklisted in the CIB.
Q: What is the maximum loan amount and tenure?
A: Up to the Single Obligor Limit (SOL) prescribed by NRB, for a tenure of 1 year, renewable subject to review. The loan cannot be restructured or rescheduled.
Q: How much collateral is required?
A: For ordinary shares, the Bank finances up to 70% of whichever is lower of the 180-day average closing price or the current market price. For promoter shares, up to 50% of whichever is lower , the last closing price or 50% of the 180-day average ordinary share price. Government bonds and mutual funds can also be pledged and top-tier shares may get an additional 10% boost based on the Bank's assessment. If you hold 2% or more of a company's promoter shares, NRB approval is required to pledge them.
Q: What happens if the value of my pledged shares falls?
A: The Bank calculates your drawing power weekly. If your outstanding loan exceeds the eligible limit, the Bank will issue a margin call, which you must generally meet within 7 days.
Q: Is insurance required?
A: Not specified for this product, since the security is pledged shares/bonds rather than physical property.
EDUCATION LOAN
Q: What is MNBBL Education Loan?
A: The Education Loan is a term loan that helps fund education expenses for yourself or a dependent, covering costs such as admission, tuition, hostel fees, books and travel, secured against real estate, a Fixed Deposit Receipt or Government Bonds.
Q: How can I get an Education Loan?
A: You can apply if you (or your dependent) have been admitted to or are pursuing a course and need funding for admission, tuition, hostel, books, travel or similar expenses and you can offer eligible collateral.
Q: What is the maximum loan amount and tenure?
A: Up to NPR 2 crores and up to 80% of your total education expenses. Tenure is up to 10 years, extendable with higher-level approval. The grace period generally covers your course duration plus 6 months.
Q: How much collateral is required?
A: A first charge on real estate property, a Fixed Deposit Receipt or Government Bonds. The Bank finances up to 50% of the fair market value of real estate collateral (up to 90% if you offer an FDR or Government Bonds instead).
Q: Do I need to start repaying while I'm still studying?
A: No, not immediately. The grace period generally covers your course duration plus 6 months, after which regular EMI repayment begins.
Q: Is insurance required?
A: Yes, fire and earthquake insurance covering the value of the mortgaged building/property is required.
PROFESSIONAL LOAN
Q: What is MNBBL Professional Loan?
A: The Professional Loan is a Term Loan or Overdraft designed specifically for qualifying working professionals, such as Chartered Accountants, doctors, engineers, pilots and government, public-sector or INGO/UN/MNC employees, to help meet their personal or professional financial needs.
Q: How can I get a Professional Loan?
A: This loan is available to working professionals such as Chartered Accountants (CA/FCA), doctors, engineers, pilots, government/public employees, teachers and staff of UN agencies, INGOs or MNCs. You need a personal PAN card, a clean CIB record with no active criminal charges, no overdue payments exceeding 90 days in the last 6 months and generally at least 2 years of work experience (4 years if you are a private-sector or business employee). Self-employed CAs, doctors and engineers must also submit their prior year's financial/audit reports and tax clearance certificates.
Q: What is the maximum loan amount and tenure?
A: The financing limit is generally up to 24 months of your gross salary, subject to product ceilings (up to about NPR 15 lakhs for Term Loan, with sub-limits around NPR 5 lakhs for Overdraft and NPR 10 lakhs for Term Loan under certain schemes — please confirm the exact applicable limit with your branch). Term Loan tenure is up to 7 years; Overdraft is 1 year, renewable. No grace period is allowed.
Q: How much collateral is required?
A: A personal guarantee from a family member or another eligible professional, plus proof of ownership of an immovable asset (in your name or a family member's name) equal in value to the loan amount.
Q: Will I be charged a fee for repaying my Professional Loan early?
A: No, there is no prepayment fee on this loan. However, no grace period is provided for either the Term Loan or the Overdraft, so installments begin right away.
Q: Is insurance required?
A: Yes, mandatory Life or Accident Insurance equal to your loan amount is required for the loan period.
LOAN AGAINST FIXED DEPOSIT (FD) / GOVERNMENT BONDS
Q: What is MNBBL Loan Against FD/Bonds?
A: This is an Overdraft, Demand or Term loan given against your own Fixed Deposit held with the Bank or a Government/NRB Bond that you own, letting you access funds quickly without breaking your FD or bond before its maturity.
Q: How can I get this loan?
A: You can apply if you hold a Fixed Deposit with the Bank or own a Government/NRB Bond certificate that can be pledged. You must be the FD holder or Bond owner; for joint accounts, consent from all holders is required.
Q: What is the maximum loan amount and tenure?
A: Up to 90% of your FD amount or up to 90% of the face value of a pledged Government/NRB Bond, subject to the Single Obligor Limit (SOL). The tenure is aligned with the remaining tenure of your FD or Bond, and no grace period is provided.
Q: How much collateral is required?
A: Your own Fixed Deposit (with a lien marked on it) or the original Government/NRB Bond certificate, which stays in the Bank's custody.
Q: If I pledge a Government/NRB Bond, how do I receive my bond interest?
A: Semi-annual bond interest is routed through Muktinath Bikas Bank/NRB and the net interest (after tax) is credited to your account.
Q: Is insurance required?
A: Not applicable for this product, since the security is your own FD or Bond.
GOLD / SILVER LOAN
Q: What is MNBBL Gold/Silver Loan?
A: The Gold/Silver Loan is a demand loan given against your gold, silver or gold/silver ornaments, offering quick access to funds secured by your precious metal holdings.
Q: How can I get a Gold/Silver Loan?
A: Any individual who owns gold, silver or gold/silver ornaments and has an official bill/receipt for them can apply, provided they are not blacklisted in the CIB (a CIB report older than 1 month is not accepted) and have no overdue payments exceeding 90 days in the last 6 months.
Q: What is the maximum loan amount and tenure?
A: Up to NPR 50 lakhs, for a tenure of 1 year, which can be renewed.
Q: How much collateral is required?
A: Your gold/silver/ornaments are pledged as collateral. The loan limit is set after deducting a minimum margin of 20% from the market value (the loan will not exceed the market value).
Q: How is my gold/silver kept safe while the loan is active?
A: Your pledged gold, silver or ornaments are kept securely in the Bank's double-lock safe/cabinet storage system for the entire loan period.
Q: Is insurance required?
A: Yes, mandatory insurance equal to the valuation of the pledged gold/silver. Your collateral is also kept in the Bank's double-lock safe/cabinet storage system.
SME BUSINESS LOAN
Q: How can I get an SME Business Loan?
A: Registered businesses with sufficient cash flow to service their EMI/EQI can apply. A Term Loan suits long-term assets or projects (for example, Infrastructure or CAPEX financing); an Overdraft gives flexible access up to an approved limit; and a Working Capital Loan (short-term FWCN or fixed-tenure PWCN) covers day-to-day or permanent working capital needs.
Q: What is the maximum loan amount and tenure?
A: Term Loan/OD: up to NPR 5 crores. Working Capital Loan: more than NPR 1 crore, as per the Working Capital Guidelines (WCG) 2079 (2nd Amendment). Tenure: Infrastructure Term Loan up to 20 years; CAPEX financing up to 15 years (excluding a 1-year grace period) or the useful life of the asset/machinery; OD is renewable yearly; WCL is 1 year for short-term (FWCN) and 3–10 years for fixed-tenure (PWCN) working capital.
Q: How much collateral is required?
A: Primary security is mortgaged land and building, financed up to 80% of Fair Market Value (FMV) and up to 80% of Net Tangible Assets (NTA). For working capital loans, the Bank also takes a first charge on current assets and personal guarantees from partners/directors/owners are required.
Q: What is the difference between the two types of Working Capital Loan?
A: FWCN is a short-term working capital loan to meet fluctuating day-to-day business requirements, while PWCN (Working Capital Term Loan) is a fixed-tenure loan designed to finance the permanent working capital needs of the business.
Q: Is insurance required?
A: Yes. Mortgaged property must be insured against fire and earthquake (house insurance optional if land value alone covers the loan) and stock/inventory must be insured based on the annual average stock, with additional cover for seasonal stock increases.
HIRE PURCHASE
Q: What is MNBBL Hire Purchase Loan?
A: Hire Purchase is a term loan for individuals, firms and companies to purchase a new or used vehicle, with the vehicle itself serving as the primary collateral, registered in the Bank's name until the loan is repaid.
Q: How can I get a Hire Purchase loan?
A: Individuals, firms and companies purchasing a new or used vehicle can apply, provided they have sufficient, legal and stable income (the applicant's own income or that of immediate family members, from sources such as salary, rental, interest/dividend/commission, agriculture, foreign employment, business income or other Bank-approved and documented income).
Q: What is the maximum loan amount and tenure?
A: Individuals: up to NPR 2 crores. Firms/Companies: up to NPR 20 crores. Tenure is up to 7 years, extending up to 10 years for high-resale brands (such as Toyota, Hyundai, Mitsubishi, BMW, Audi). Grace period is normally not given, except for up to 6 months for new commercial vehicles requiring fitting.
Q: How much collateral is required?
A: The vehicle itself is the primary collateral, registered in the Bank's name with an insurance endorsement. New vehicles are financed up to 80% of invoice/valuation and old vehicles up to 65% of valuation. Real estate collateral is optional and not mandatory.
Q: Is there a grace period before I start repaying?
A: Normally no grace period is given. An exception is made for new commercial vehicles that need fitting/bodywork, where a grace period of up to 6 months may be allowed.
Q: Is insurance required?
A: Yes, the vehicle must carry insurance with the policy endorsed in the Bank's favour for the loan period.
AGRICULTURE LOAN
Q: What is MNBBL Agriculture Loan?
A: The Agriculture Loan is a Term Loan or Overdraft that finances agricultural activities, including long-term projects such as fruit cultivation, tea/coffee farming or livestock, with collateral-free group lending options available for small and marginal farmers.
Q: How can I get an Agriculture Loan?
A: Individuals and businesses engaged in agriculture (including long-term projects like fruit cultivation, tea/coffee or livestock) with sufficient cash flow to service the loan can apply. Small and marginal farmers may also access collateral-free group lending options.
Q: What is the maximum loan amount and tenure?
A: Up to NRs. 10 crores. Term Loan tenure is up to 15 years; Overdraft is 1 year, renewable. Long-term projects may get a project-specific gestation period with optional interest capitalization and a general grace period of up to 6 months during construction/setup.
Q: How much collateral is required?
A: Land and building mortgage are generally required, financed up to 80% (for land with road access of 8 ft or more), 70% (for land with less road access or general agricultural land) or 50% (for machinery). Collateral-free group lending is available for small/marginal farmers. If land is jointly owned by a family, one owner can mortgage it, but personal guarantees from all co-owners are mandatory.
Q: Do long-term projects like tea, coffee or livestock farming get special repayment terms?
A: Yes. Such long-term projects may be given a project-specific gestation period, with the option to capitalize interest during that period, in addition to the general grace period of up to 6 months during construction/setup.
Q: Is insurance required?
A: Yes, mandatory insurance on project assets, stock and livestock/crops in the Bank's name.
SMALL ENTERPRISES LOAN
Q: What is MNBBL Small Enterprises Loan?
A: The Small Enterprises Loan is a Term Loan or Working Capital facility for small and medium enterprises (MSMEs) in commercial agriculture, small cottage industries, trade and services, supporting both existing businesses and viable new startups.
Q: How can I get a Small Enterprises Loan?
A: Startups and existing MSMEs in commercial agriculture, small cottage industries, trade and services can apply. The enterprise must be officially registered with the relevant government authorities and submit tax clearance certificates or self-declarations as per NRB directives. Existing operating businesses are preferred, but new ventures are eligible with a reliable, viable business plan.
Q: What is the maximum loan amount and tenure?
A: Up to NRs. 25 lakhs. Term Loan tenure is up to 15 years; Working Capital is 1 year, renewable.
Q: How much collateral is required?
A: Mandatory physical collateral of Land and Building, financed up to 80% of the fair market value.
Q: Can a brand-new business apply or only existing ones?
A: Existing operational businesses are generally given preference, but new ventures and startups are also eligible, provided they submit a reliable and viable business plan.
Q: Is insurance required?
A: Yes, mandatory comprehensive insurance of business inventory, stock and fixed assets. House/building insurance is optional if the land's fair market value alone covers the loan.
WOMEN ENTERPRISE DEVELOPMENT LOAN
Q: What is MNBBL Women Enterprise Development Loan?
A: The Women Enterprise Development Loan is a Term Loan or Working Capital facility, offered under subsidised interest schemes, to promote self-employment and business growth for women-led enterprises.
Q: How can I get a Women Enterprise Development Loan?
A: Women-led enterprises, whether existing operating businesses or new ventures/startups with a viable, reliable business plan, can apply.
Q: What is the maximum loan amount and tenure?
A: Up to NRs. 25 lakhs. Term Loan tenure is up to 15 years; Working Capital is 1 year, renewable.
Q: How much collateral is required?
A: Real estate collateral (Land and Building), financed up to 80% loan-to-value, with some flexibility as per NRB directives.
Q: Is this loan open to new businesses or only established ones?
A: Both. It is open to existing operational businesses as well as new ventures/startups, as long as new businesses present a viable, reliable business plan.
Q: Is insurance required?
A: Yes, mandatory insurance on business assets and stock. House/building insurance is optional if the land's fair market value alone covers the loan.
STILL HAVE QUESTIONS?
This FAQ gives a simple, general understanding of our loan products. Actual eligibility, collateral valuation, documentation and final terms are decided on a case to case basis based on your documents, credit assessment , Bank's Credit Policy and NRB directives . Please visit your nearest Muktinath Bikas Bank Ltd. branch or speak to a Relationship Manager for personalised advice and the up-to-date information before you apply.
Who is eligible to open an account through the online channel?
maintainingMuktinathsubmitOnce submitted, the account is created in an inactive state and needs physical verification for activation.