Term Loan

Term Loan

Sanima Bank’s SME Loan offers a wide-array of financial products to Small & Medium Enterprises. Sanima as your partner will help, support and grow your business to take it to the newer heights, delivering cost effective solutions at almost every geo-locations in the country with promptness and convenience. Sanima offers fast track loans for SMEs under the following schemes. Loans under SME are approved subject to fulfillment of terms and conditions laid down by the Bank which includes risk analysis on the Management, Business, Financial parameters etc.

Term Loan
7 %
Interest Rate
Term Loan
9 %
Base Rate
Term 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.

Term Loan


Documents Required for Term loan

  1. Loan Application Form.
  2. Identification document like Citizenship/Passport of applicant
  3. 2 Passport size Photograph of applicant
  4. Certified Income Statement
  5. Paper of Agreements/contracts (for Fixed Income Groups) of applicant
  6. Profile of Company and its Director(s) or Firm and its Partners / Proprietor.
  7. Copy of land ownership certificate, blue print of land, latest land revenue receipt
  8. Registration documents of the company / Firm (renewed, as applicable).
  9. Other related documents as per bank request.

What Is Term Loan ? 

Term loans are basically granted for starting a new business or expansion of existing business, purchase of land/plant, machinery for setting up factory etc. It is granted for mostly 1 year to 20 years. Term loans have a specified repayment terms with fixed instalment facilities. Interest is charged on the principal amount in this case. In case of term loan, mortgage of land, plant and machinery, building may be shown as the security to avail the loan. The borrower has to pay a penalty amount in case of repayment of their borrowed money before maturity term. A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and either a fixed or floating interest rate. A term loan is often appropriate for an established small business with sound financial statements. Also, a term loan may require a substantial down payment to reduce the payment amounts and the total cost of the loan.

Who Can Apply For Term Loan ?

In corporate borrowing, a term loan is usually for equipment, real estate, or working capital paid off between one and 25 years. Often, a small business uses the cash from a term loan to purchase fixed assets, such as equipment or a new building for its production process. Some businesses borrow the cash they need to operate from month to month. Many banks have established term-loan programs specifically to help companies in this way. The term loan carries a fixed or variable interest rate based on monthly or quarterly repayment schedule, and a set maturity date. If the loan proceeds are used to finance the purchase of an asset, the useful life of that asset can impact the repayment schedule. The loan requires collateral and a rigorous approval process to reduce the risk of default or failure to make payments. However, term loans generally carry no penalties if they are paid off ahead of schedule.

Types of Term Loans

Term loans come in several varieties, usually reflecting the lifespan of the loan.

Short-term loan

A short-term loan usually offered to firms that don't qualify for a line of credit, generally runs less than a year, though it can also refer to a loan of up to 18 months or so.

Intermediate-term loan 

An intermediate-term loan generally runs more than one—but less than three—years and is paid in monthly installments from a company’s cash flow.

Long-term loan

A long-term loan runs for three to 25 years, uses company assets as collateral, and requires monthly or quarterly payments from profits or cash flow. The loan limits other financial commitments the company may take on, including other debts, dividends, or principals' salaries, and can require an amount of profit set aside for loan repayment.

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