Nirdhan Uthan Bank Limited

 Largest Branch Network, The only MFI in Nepal Which has Covered 75 of 75 Districts of Nepal.

Loan

General Loan

The general loan is year loan with monthly repayments. Clients make monthly payments mostly during center meetings. A center is a meeting place, where group members perform their financial transactions such as repayment, withdrawals, deposit etc. Generally a group is composed of five members. The interest rate is 18% on declining basis if the clients pay the installment in center meeting. Before women can become members of NUBL, and hence eligible for loans, they must complete the compulsory group training (minimum 7 days) and pass the group recognition test.

YearMaximum Loan Size Rs.Loan TermAnnual Interest Rate on declining balanceRepayment Frequency
1Upto 75,000Maximum 1 year18.00%Monthly/Quaterly
2Upto 1,25,000Maximum 3 years18.00%Monthly/Quaterly
3Upto 1,75,000Maximum 3 years18.00%Monthly/Quaterly
4Upto 2,00,000Maximum 3 years18.00%Monthly/Quaterly
5Upto 3,00,000Maximum 3 years18.00%Monthly/Quaterly

Agriculture Loan

This loan is used for seasonal opportunities like purchasing and selling of agricultural products and animals in festival seasons and is accessible to clients who have successfully completed one cycle of the general loan with good repayment performance.

S.No.Product NameMaximum Loan Size Rs.Loan TermAnnual Interest Rate on Declining BalanceRepayment Frequency
1.Seasonal LoanUpto 30,0006 months18.00%Monthly/Quarterly
2.Tube-well LoanUpto 20.0001 Year18.00%Monthly/Quarterly
3.Irrigation Loan Upto 1,00,0002 Years18.00%Monthly/Quarterly

Housing Loan

NUBL uses a very specific targeting strategy to ensure that all first-time clients are very poor. As one of the targeting criteria is the absence of cement walls or ceiling in the client’s house, there is a strong demand for various types of housing loans. To access the housing loans the clients must have maintained strong credit discipline in the previous years, have improved economic condition from previous loans, and be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind). NUBL charges a interest rate of 18 percent on a declining balance with monthly repayments.

  • House Construction Loan: available to clients who meet the above requirements and have taken general loan. Members generally construct a new house on their current property with this loan.
  • House Repair Loan: available to clients who meet the above requirements and have completed the first loan cycle of the general loan. This loan is used to make capital improvements like replacing a roof on a current house.
  • Homestead Purchase Loan: available to clients who meet the above requirements and have borrowed general loan. This loan allows members to purchase a small amount of land.

The loan size, loan term and other conditions for housing loans are as follows:

Loan TypeMaximum Loan Size Rs.Loan TermAnnual Interest RateRepayment Frequency
House constructionUpto 3,00,0005 Years18.00%Monthly
House repairUpto 40,0002 Years18.00%Monthly
Homestead purchaseUPto 3,00,0003 Years18.00%Monthly
Toilet/LaterineUpto 30,0002 Years18.00%Monthly

Foreign Employment Loan

This loan is used for the family member of the client to go abroad for foreign employment. Bank offers this loan to those clients who have utilized General loan with good repayment performance. This is collateral based loan.

Maximum Loan Size Rs.Loan TermAnnual Interest Rate DecliningRepayment Frequency
2,00,000Upto 3 years18%Monthly/Quarterly

Microenterprise Loan

The microenterprise loan was introduced in mid-July 2000. This loan targets graduates of collateral free loans. The clients eligible for this loan must have taken General Loan, maintained strong credit discipline, have improved economic condition from previous loans, be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind), submit collateral, and demonstrate an ability to operate a micro-enterprise. The loan size, term and other conditions for this loan are as follows: The loan size, term and other conditions for this loan are as follows:

S.No.Loan ProductMaximum Loan Size Rs.Loan TermAnnual Interest rateRepayment Frequency
01Individual LoanUpto 60,000Upto 2 years18.00%Monthly / Quarterly
02.Micro Enterprise LoanUPto 5,00,000Upto 3 years18.00%Monthly / Quarterly

Energy Loan

This loan is used for manufacturing bio gas, Solar plant As well as Inverter purees. Bank offers this loan to those clients who have livestock and have utilized General loan with good repayment performance. The loan can be given with collateral and without collateral.

S.No.Loan ProposeMaximum Loan Size Rs.Loan TermAnnual Interest Rate DecliningRepayment Frequency
01.Gobar GasUpto 40,000Upto 2 Years17%
Monthly
02.SolarUpto 40,000Upto 2 Years17%Monthly
03.Improving Cooking StoveUpto 40,000Upto 2 Years17%Monthly
04.PanighattaUpto 40,000Upto 2 Years17%Monthly
05.Solar Lamp/Generator / MotorUpto 40,000Upto 2 Years17%Monthly
06.Energy Loan (Collateral Base)Upto 60,0002-5 Years17%Monthly

Education Loan

This loan is used for the children of the client to study and get degree of technical and vocational education. Bank offers this loan to those clients who have utilized General loan with good repayment performance. This is collateral based loan.

Maximum Loan Size Rs.Loan TermAnnual Interest Rate DecliningRepayment Frequency
1,00,000Upto 3 Years16%Monthly/Quarterly

Emergency Loan

This loan is used to cope the emergency situation happens to the client due to natural calamities. Bank offers this loan to those clients who have affected by natural disasters.

Maximum Loan Size Rs.Loan TermAnnual Interest Rate DecliningRepayment Frequency
40,000Upto 2 years10%Monthly/Quarterly