Foreign Currency Deposits At Sbl
Last Updated Date: May 16, 2022
Founded in 2002 and promoted by prominent Nepalese celebrities, Siddhartha Bank Limited (SBL) is today one of Nepal's steadily growing banks. Although the promoters come from a wide range of industries, they have tremendous market knowledge and share their valuable insights with the Bank in order to develop it. Siddhartha Bank has been able to come up with a wide variety of products and services that best serves its clientele within a short period of time. Since the beginning of its operations, Siddhartha Bank has been consistently reporting growth in its portfolio size and profitability. The administration of the bank is highly competent. In order to become one of the most promising commercial banks in the world, Siddhartha Bank has been able to gain substantial confidence from clients and all other stakeholders. The Bank is completely committed to the satisfaction of customers. An indication of its dedication to customer satisfaction is the variety and scope of modern banking products and services that the Bank has offered. It is this dedication that helped the Bank record quantum growth each year. The Bank is positive and optimistic that it will be able to preserve this trust and step even further towards its goal of being one of the industry's leading banks.
A foreign currency loan means that you borrow money in a foreign currency. A loan denominated in a currency other than that of the borrower's home country, for which repayment terms are prearranged through the use of a forward currency contract. Foreign currency loan refers to the loan granted by the bank through the self-raising foreign currency fund, including five types of foreign currency, US dollar (USD), Euro (EUR), Japanese yen (JPY), British pound (GBP), and Australian dollar (AUD). Nepal Rastra Bank(NRB) under Section 12 of the Foreign Exchange (Regulation) Act 1962 (2019) issued foreign currency loan to respective categories banks. Under the NRB Circulars the Central Bank has imposed various terms and conditions on foreign loans. The NRB Circulars require the borrower to first attempt to avail of the loan from commercial banks and financial institutions in Nepal. Only in the event the borrower fails to obtain the amount of funds it requires at a competitive rate of interest locally, the borrower can obtain loan from foreign lenders. The key provisions of the NRB Circulars:
A Nepalese citizen can obtain foreign loan for business purpose from his/her relatives residing outside Nepal, non-resident Nepalese or foreign entities, with the approval of the Central Bank.
1. Foreign Banks and Financial Institutions
In the event the Nepalese borrower cannot obtain loan locally, the borrower is first required to attempt to avail of foreign loan from foreign banks and financial institutions.
2. Authorized Finance Companies / Financial Institutions:
Only in the event it becomes difficult to obtain foreign loan from foreign banks and financial institutions, the borrower can obtain loan from any finance company or financial institution which has been authorized to provide loan as per the approval obtained by such finance company or financial institution from their respective government, central bank or any other regulatory authority.
3. Foreign Companies / Entities:
In the event the borrower is unable to obtain loan from the entities the borrower can obtain foreign loan from a foreign company or other entities. In respect of loan from foreign companies / entities-
(i) the financial details of the lending entity certified by its auditor (or audited accounts), (ii) source of funds for the loan, and (iii) schedule for the transfer of loan amount by the lender, an
1. It covers a comprehensive range of usage with main use of meeting customer's demands for foreign currency financing, including enterprises' demands for working capital and for fixed asset investment.
2. According to customer request, its lending interest rate can apply either floating rate or fixed rate. If required, the rate can be swapped from floating rate to fixed rate.
3. Compared with foreign government loans and buyer's credit of foreign banks, our bank's foreign currency loan can be more widely used and help customers purchase equipment and materials from foreign countries.
1. Establish credit relations with the borrower. For enterprise customers of foreign currency loan, sales account manager should conduct admittance criteria examination of the borrower in accordance with our bank's credit rating and relevant regulations on loan.
2. Investigation prior to the loan grant. Sales account manager should conduct comprehensive investigation to loan through field research and other channels based on the status of borrower, guarantor, mortgagor (pledgor) and the mortgage (pledge), specially focusing on such aspects as legality, compliance, safety and profitability.
3. Examination and approval of the loan: loan usage and management.
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