A demand loan is a loan that a lender can require to be repaid in full at any time. This condition is understood by the lender and the borrower from the outset. Borrowers like the convenience and flexibility associated with demand loans because they can repay them in full or in part at any time, without penalty.
Last Updated Date: May 16, 2022
Nepal Credit & Commerce Bank Ltd. (NCC Bank) formally registered as Nepal - Bank of Ceylon Ltd. (NBOC), commenced its operation on October 14, 1996 as a Joint Venture with the Bank of Ceylon, Sri Lanka. It was then the first private sector Bank with the largest authorized capital of NRS. 1,000 million. The Head Office of the Bank is located at Bagbazar, Kathmandu. The name of the Bank was later changed to Nepal Credit & Commerce Bank Ltd., (NCC Bank) on 10th September, 2002, due to transfer of shares and management of the Bank from Bank of Ceylon, to the Nepalese Promoters. NCC Bank completed 23 years of its banking services on October 14, 2019 and recently entered into a historic merger with four Development Banks – Infrastructure Development Bank Ltd., Apex Development Bank Ltd., Supreme Development Bank Ltd. and International Development Bank Ltd. NCC Bank started its joint transaction from January 01, 2017 has now become one of the largest private sector commercial banks. At present NCC provides banking services and facilities to rural and urban areas of the country through its 120 branches, 85 ATMs and 4 Extension Counters scattered all over the country from Far West to Far East. The Bank has developed a corresponding agency relationship with more than 150 International Banks having a worldwide network.
Documents Required for Demand Loan
A demand loan is a loan that a lender can require to be repaid in full at any time. This condition is understood by the lender and the borrower from the outset. The arrangement has advantages for both parties. Lenders like the reassurance of being able to demand repayment, whether to pursue other investments or simply to recover their principal. Borrowers like the convenience and flexibility associated with demand loans because they can repay them in full or in part at any time, without penalty. It has an open-ended repayment schedule. Borrowers can repay the borrowed amount anytime when they have a surplus amount. But they are subjected to repay the entire loan amount anytime on demand of the lender. Demand loans are sanctioned by banks or financial institutes against some kind of security as goods or stocks, shares, land building, or any other assets. In demand loans, there is no such penalty for pre-payment which is normal to other loans with a fixed lock-in period. Borrowers use demand loans for many purposes, including:
There are some benefits demand loan offers that prove helpful to the borrowers to opt for this loan. Those benefits of demand loan are as follows: