Pledge Loan
pledge loan differs from a standard loan in that the loaned amount is completely backed with collateral from the borrower. A borrower can use their funds, such as a savings account, as collateral to obtain a loan.
pledge loan differs from a standard loan in that the loaned amount is completely backed with collateral from the borrower. A borrower can use their funds, such as a savings account, as collateral to obtain a loan.
Last Updated Date: March 21, 2022
Nepal Rastra Bank issued Mega Bank its Operating License on 4th Shrawan, 2067 and it commenced banking operations from 7th Shrawan 2067. It lies under class “A” commercial bank which has achieved Nine years of operations and is on its way to realizing the aspirations of 2,396 promoters who incorporated chiefly from middle-class households spread over more than sixty three Districts of Nepal. Mega Bank has merged with Paschimanchal Development Bank and Tourism Development Bank. Banking Services of Mega Bank Limited are dedicated to the whole monetary strata of the Nepalese society from “Halo” to “Hydro”. Mega Bank Nepal Limited is currently trading in Nepal Stock Exchange with symbol MEGA. MEGA has provided a dividend return of 7.85 percent in the fiscal year 2074/75. Mega Bank Limited has appointed Nabil Investment Banking Limited as it’s share registrar. Mega Bank is dedicated to supplying financial options to not just the pinnacle middle or backside of the Pyramid.
A pledge loan differs from a standard loan in that the loaned amount is completely backed with collateral from the borrower. It is a well known fact that the prices of agricultural commodities immediately after harvest, tend to be low compelling the farmers specially the small and marginal farmers with low or no holding capacity, to resort to distress sale. There has been a felt need to provide the farming community with pledge finance to enable the farmers to avail credit when the prices are low and to sell their produce when the prices are favorable. A borrower can use their funds, such as a savings account, as collateral to obtain a loan. pledge loans against the stock after verification of the same. The stock, however, is kept under lock and key of the Bank and the loan disbursed and settled in pro rata basis with the stock pledged and sold. The funds used as collateral then become "frozen" until the loan is paid back in full. Because pledge loans are fully backed with collateral, they are easier to obtain than traditional loans and offer a number of other benefits to borrowers such as:
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