Other Retail Loan

Other Retail Loan

Deprived Loan is specially designed for small borrower or deprived sectors. Customers who need small amount of money for a small timeline can apply for this type of Loan.

Other Retail Loan
7 %
Interest Rate
Other Retail Loan
9 %
Base Rate
Other Retail Loan
16 %
Total Interest Rate

Last Updated Date: May 16, 2022

Sanima Bank Ltd

Sanima bank is one of the developed, strong and reliable banks promoted by the prominent and dynamic businessmen of the Non-Resident Nepalese (NRNs). It obtained an operating license from Rastra Bank of Nepal and started operating in 2004. Sanima Bank has 27 full-fledged branches inside and outside the Kathmandu valley to provide its customers with a banking financial solution and plans to develop even more facilities in different parts of the country. Sanima Bank Limited started its activity in 2004 as a National Level Development Bank. Sanima got the working permit from Nepal Rastra Bank to work as A Class Commercial Bank in 2012. Sanima has 79 undeniable branches and one expansion counter inside and outside the Kathmandu Valley and has further designs to extend its scope in the different piece of the nation.

Other Retail Loan


Documents required for Deprived loan

  1. Application form from applicants/ co –applicants with 2 passport sized photo
  2. Copy of citizenship certificate of applicant, co-applicant and directors/major stakeholders in case of entity.
  3. Documents related to other income such as salary certificate, rental agreements papers, pension book etc of the applicant and co-applicant.
  4. Net worth statement of applicant/co-applicant/proprietor/partner/director/ personal guarantor.
  5. Property related documents such as land/buildings/apartments ownership certificates, property deed, four boundary certification of property, land revenue receipt, blue print of the land, certificate of completion of building etc.
  6. Business related documents such as minute of the firm/company, registration certificate, partnership deed, article of association, memorandum of association, tax clearance certificate, PAN certificate, immediately preceding 2 years audited financial statement and 3 years management certified/projected financial statements in case of revolving loan or projected financial statement up to the period of loan tenure in case of terminating loan, business plan etc.
  7. Any other documents to justify the loan as per request of banks.

What Is Deprived Loan?

Deprived sector lending refers to small loans that are provided to poor and rural people for small projects. The loans are supposed to be one of the measures used by the central bank to promote financial inclusion and establish the habit of formal banking in the rural and poor areas. According to the monetary policy, the commercial banks have to lend 3.5 percent of their total loans to the deprived sector while development banks and finance companies’ loan portfolios should contain 3 percent and 2.5 percent loans issued to the deprived sector, according to monetary policy. The amount will be increased by 0.5 percentage point in two successive years. It offers several credit facilities directly or in collaboration with partner institutions targeted at micro-enterprises and individuals who have been deprived of easy access to finance in suburban and rural areas of Nepal.The main objective of deprived sector credit is to 
uplift the sociology-economic status of these people. 
Micro finance is a process of delivering financial services to the deprived groups of 
people that includes various activities including that of micro credit, saving mobilization, 
transfer of money, micro insurance and payment services to rural poor people. It helps to 
provide self-employment opportunities and income generating activities in rural areas.

Features Of Deprived Loan :

  • Available to the community level and small enterprises such as cottage industries, alternative energy, health, agriculture, livestock farming & individuals
  • Easily accessible in remotest parts of the country with flexible repayment schemes.
  • Wholesale lending facility to Microfinance Institutions who are specialized in deprived sector lending.

Impact of Deprived Sector Loan

The fundamental micro finance activities undertaken in the country revealed that the deprived sector credit policy has created favorable impact on increasing access to finance, expansion of microfinance activities and improving socioeconomic status of the deprived people. The impact of the policy can be evaluated based on following indicators:

Increased in access to finance: 

The rapidly expanding banks and financial institutions particularly micro credit development banks have contributed to increase in access to finance of the rural poor. Increase in number of borrowers, Institutional development and Competitive Micro Credit Business.

Increase in Micro Finance Activities: 

The mandatory deprived sector lending policy is being one of the main and continuous sources of funds for Micro-fiances institution(MFIs). deprived sector credit policy has contributed significantly on the various aspects of Micro Credit Development Banks and micro financing activities in the country.

Improvement in Socioeconomic Status 

Micro credit program helps to assemble poor people in-group, give an opportunity to discuss and share of information about their business and create awareness against poverty. Micro credit financing procedure has developed the attitude of financial discipline among the poor. As a result the flow of micro credit, outstanding repayment rate and increase in group savings has been achieved by MFIS. This indicates that the policy provision has enhanced the socioeconomic status of the deprived people. 

Increase in Economic Activities 

Once the poor people get credit for income generating activities it energized them and became more productive. It will help to enhance economic activities thereby increase in income, self-employment and livelihood of the poor people.

Benefits Of Deprived Loan:

  • Creating opportunities for self-employment to individuals in communities
  • Enhancing skill-based enterprises and introducing affordable technologies for uplifting the living standards of households

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