Kathmandu: Everest Bank Limited provides Small and Medium Enterprise (SME) loans to support the financial requirements of businesses operating across various commercial sectors in Nepal. The financing facility is designed to address working capital needs and fixed capital investments for enterprises involved in trading, manufacturing, production, processing, and service industries.
Under the SME loan facility, eligible businesses can access financing of up to Rs 100 million (Rs 10 crore). The bank offers different types of working capital facilities and term loans based on the nature and financial requirements of individual businesses.
Comprehensive Working Capital and Term Loan Facilities
Everest Bank provides a range of working capital financing options to help businesses manage their daily operations and liquidity requirements.
The available facilities include Overdraft (OD), Short-Term Demand Loan (STDL), Demand Loan (DL), Trust Receipt (TR), Letter of Credit (LC), and Bank Guarantee (BG).
In addition to working capital financing, the bank also offers term loans for long-term capital investments. These loans can be used for purchasing commercial vehicles and financing other fixed assets required for business expansion and operations.
Businesses applying for Everest Bank’s SME loans must be officially registered with the relevant government authorities, municipalities, or rural municipalities.
The eligible business enterprise must have a paid-up capital of up to Rs 150 million (Rs 15 crore). For startups that have been operating for less than one year, the proprietors, partners, directors, or key executives must have at least one year of prior experience in a similar line of business or a family enterprise.
These eligibility requirements are intended to ensure that businesses seeking financing meet the bank’s specified criteria.
Collateral and Security Requirements
The bank has established different security requirements depending on the type of financing facility.
For working capital loans, primary security includes the hypothecation of commercial inventory stock, book debtors, assignment of current assets, trade bills, and business receivables.
For term loans, the specific fixed assets financed by the bank are taken as primary security through hypothecation. For Non-Fund-Based (NFB) facilities, such as bank guarantees and letters of credit, the required cash margin is determined according to the bank’s risk assessment.
Flexible Loan Tenure and Repayment Terms
Everest Bank structures its working capital loans as one-year revolving facilities. These facilities are subject to annual renewal, depending on satisfactory account operations.
Term loans offer flexible repayment schedules based on the financing requirements and nature of the business, with repayment tenures extending up to 10 years.
The bank also requires comprehensive insurance coverage for properties and assets financed or secured under the loan facility, in accordance with its standard insurance clauses.
Supporting Business Expansion and Entrepreneurship
Everest Bank’s SME loan facility is designed to help small and medium-sized enterprises manage liquidity, meet operational expenses, invest in fixed assets, and expand their business activities.
With financing of up to Rs 100 million, multiple working capital options, and term loans with repayment periods of up to 10 years, the facility provides eligible businesses with financing options suited to different stages of their operations.
Through these structured lending facilities, Everest Bank aims to support local entrepreneurship, business development, productive investment, and broader economic activities in Nepal.
