Flexi Overdraft

Flexi Overdraft

Overdraft facility is the form of short-term credit, meant for meeting the working capital requirement of the borrower.

Flexi Overdraft
4.16 %
Interest Rate
Flexi Overdraft
8.19 %
Base Rate
Flexi Overdraft
12.35 %
Total Interest Rate

Last Updated Date: May 17, 2022

Nepal Bank Ltd

Nepal Bank Limited is the first financial institution of Nepal which was established on November 15, 1937 A.D (Kartik, 30, 1994). It was shaped under the principle of Joint undertaking (Joint project between govt. & regular public). NBL's licensed capital was once Rs. 10 million & issued capital Rs. 2.5 million of which paid-up capital used to be Rs. 842 thousand with 10 shareholders.. It is a national level bank. With the recent Follow-on Public Offer (FPO) offered in 2018, the bank has a share ratio of Government to Public as 51:49 percent. This bank has not provided dividends to shareholders for the last 21 years. It is currently trading at Nepal Stock Exchange with the symbol ‘NBL’. Nepal bank has appointed Civil Capital Market Limited as its share registrar. It focuses on building internet worth and assembly of minimal capital necessities within five years.

Flexi Overdraft

REQUIRED DOCUMENTS

Documents required for Overdraft Loan

  1. Completed loan application form of the bank.
  2. Identification document like Citizenship, Passport of applicant and the guarantors
  3. 2 Passport sized Photo of applicant and the guarantors
  4. Documents certifying current salary (for employee)
  5. Certified Income Statement
  6. Firm registration certificate (if business income)
  7. PAN/VAT certificate (if business income)
  8. Paper of Agreements/contracts (for Fixed Income Groups)
  9. Copy of land ownership certificate, blue print of land, latest land revenue receipt
  10. Four boundaries certificate of the proposes collateral security
  11. Other related document as necessary


What Is Overdraft Loan ? 

Overdraft is a loan provided by a bank that allows a customer to pay for bills and other expenses when the account reaches zero. For a fee, the bank provides a loan to the client in the event of an unexpected charge or insufficient account balance. Typically these accounts will charge a one-time funds fee and interest on the outstanding balance .An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. Basically, an overdraft means that the bank allows customers to borrow a set amount of money. There is interest on the loan, and there is typically a fee per overdraft. An overdraft is like any other loan, the customer pays interest on the loan and, in the case of overdrafts, will typically have a one-time insufficient funds fee.

How does overdraft work?

Under overdraft protection, if a client’s checking account enters a negative balance, they will be able to access a predetermined loan provided by the bank, and are charged a fee. In many cases overdraft protection is used to prevent a check from bouncing, and the embarrassment that this may cause. Additionally, it may prevent a non-sufficient fund fee, but in many cases each will type of fee will charge roughly the same amount. While the  overdraft involve providing temporary emergency funds when an account unexpectedly has insufficient funds, it's important to weigh the costs. Overdraft protection often comes with a significant fee and interest .As with any loan, the borrower pays interest on the outstanding balance of an overdraft loan. Often, the interest on the loan is lower than the interest on credit cards, making the overdraft a better short-term option in an emergency. In many cases, there are additional fees for using overdraft protection that reduce the amount available to cover your checks, such as insufficient funds fees per check or withdrawal.

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