Kathmandu: Mahalaxmi Bikas Bank Limited has introduced its Loan Against Bullion scheme to provide individuals and business owners with convenient access to funds by using their physical gold and silver assets as collateral.
Under the facility, customers can obtain loans against eligible gold and silver items, including jewelry, ornaments, utensils, coins, bars, and other approved bullion assets, without having to sell their valuable possessions. The scheme is designed to help customers meet immediate personal expenses and business financing needs.
The bank offers financing of up to 75% of the Fair Market Value (FMV) of the pledged gold or silver, based on an appraisal conducted by a bank-approved gold tester. The minimum approved loan amount must not be less than 30% of the total appraised value, according to the scheme’s valuation rules.
Customers can borrow a minimum of NPR 50,000 and a maximum of NPR 5,000,000, subject to the bank’s Single Obligor Limit. The facility has a maximum initial tenure of one year, with annual renewal options available upon customer request and subject to satisfactory account performance.
The Loan Against Bullion scheme features simplified documentation requirements to speed up the verification and approval process. Funds are disbursed through an accelerated process following the valuation and secure storage of the pledged assets. The facility also offers nominal processing fees and competitive interest rates.
Customers can pledge a range of eligible physical assets, including:
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Gold and silver jewelry or ornaments
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Bullion coins and bars
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Gold or silver utensils and artifacts
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Other bank-approved physical bullion items that meet the required purity standards
To apply for the facility, interested customers can visit any authorized branch of Mahalaxmi Bikas Bank with their physical gold or silver, a valid identity document such as a Citizenship Certificate or passport, and recent passport-sized photographs.
The bank’s in-house gold tester will assess the purity and weight of the pledged items on-site to determine the eligible loan amount. The bank also provides a simplified renewal process to help customers extend the facility upon maturity, subject to applicable terms and conditions.
Through this scheme, Mahalaxmi Bikas Bank aims to provide individuals and businesses with quicker access to liquidity while allowing them to retain ownership of their valuable gold and silver assets.
