Loan Against Govt. Bonds

Loan Against Govt. Bonds

A bond is a fixed income instrument in which a loan is give by an investor to a borrower. If you buy a bond from a company, you have that amount to the company, and like all other loans, you earn an interest on your investment.

Loan Against Govt. Bonds
5 %
Interest Rate
Loan Against Govt. Bonds
7.6 %
Base Rate
Loan Against Govt. Bonds
12.6 %
Total Interest Rate

Last Updated Date: May 17, 2022

Bank of Kathmandu Ltd

Bank of Kathmandu is a commercial bank in Nepal that merged with Lumbini Bank. Bank of Kathmandu is currently trading in Nepal Stock Exchange with symbol BOKL. BOK has provided a dividend return of 25 percent in fiscal year 2074/75. Bank of Kathmandu Limited has appointed Nabil Investment Banking Limited as it’s share registrar. Bank of Kathmandu Limited has become a notable name in the Nepalese banking scenario today with a high ranking performance.Bank of Kathmandu Limited today has created a milestone in the Nepalese banking sector by being among the few commercial banks which is entirely managed by Nepalese professionals and owned by the general public and by becoming one of the largest private sector commercial banks in the country in terms of capital base, number of branch locations, ATM networks and customer base.

Loan Against Govt. Bonds

REQUIRED DOCUMENTS

  1. Copy of citizenship certificate of the borrower and all other owners of the securities
  2. Photographs
  3. Documents certifying current salary (for employee)
  4. Paper of Agreements/contracts (for Fixed Income Groups)
  5. Loan Application form duly filled and signed
  6. Firm Registration Certificate/PAN with Board Resolution for obtaining loan and to sign on security documents of the bank in case of firm/company

 

What is Loan Against Bonds?

A bond is a fixed income instrument in which a loan is give by an investor to a borrower.Loans Against Securities is available in the form of an overdraft facility which is pledged against financial securities like shares, units and bonds. Loan Against Shares/Bonds/Mutual Funds is basically a loan where you pledge the securities you have invested in as collateral against the loan amount.

A bond is a fixed income instrument in which a loan is given by an investor to a borrower.If you hold the government bonds yourself, you can either open a margin brokerage account, put the bonds in the account, then borrow against them, or you can borrow from a bank using the bonds as collateral.Bonds are subject to risks such as the interest rate risk, prepayment risk, credit risk, reinvestment risk, and liquidity risk.While granting advances against shares held in joint names to joint holders or third party beneficiaries, banks normally ensure that the objective of the regulation is not defeated by granting advances to other joint holders or third party beneficiaries to circumvent the limits placed on loans/advances against shares and other securities.Banks avail the facility of Pledge of the dematerialized shares/debentures in the depository system, whereby the securities pledged by the borrower get blocked in favour of the lending bank. The loan limit depends on the valuation of the security, applicable margin and ability to service and repay the loan. Loan is normally given in the form of overdraft facility against the pledge of the securities. Interest has to be paid for the amount and period for which the overdraft facility is utilized. A declaration is obtained from the borrower indicating the details of the loans / advances availed against shares and other securities, from any other bank, in order to ensure compliance with the ceilings prescribed for the purpose.


 

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