Business/Industrial Overdraft

An Overdraft / Property Mortgage Loan in Nepal is a secured credit facility where the borrower mortgages real estate (land, or land-and-building) to the bank or finance company in exchange for either a revolving overdraft limit (drawn and repaid flexibly, with interest charged only on the amount actually used) or a term mortgage loan disbursed against the property's value. It is aimed at individuals, professionals and business owners who own property and need working capital, business expansion funds, debt consolidation, or general personal/contingency financing — not at financing a home purchase itself. The bank's empanelled valuator appraises the property; the sanctioned limit is set as a percentage of the appraised value per Nepal Rastra Bank (NRB) norms, and a lien is registered over the lalpurja at the Malpot (Land Revenue Office). Repayment is by interest servicing (for OD) or EMI (for term loans), and default can trigger the regulatory auction of the mortgaged property.