5. Trade Finance

5.1

Documentary Credit-Import

5.1.1

Issuance of Sight/ Usance/ Revolving LC (Note: Separate approval is required for documentary credits other than above)

Corporate: 0.5% or NPR 2,500/- p.q. or part thereof whichever is higher.

Mid-Market (Regular/ Ad-hoc): 0.5% or NPR 2,500/- p.q. or part thereof, whichever is higher.

Non Corporate (SME/Retail) Customer: 0.50% or NPR 2,500/- p.q. or part thereof, whichever is higher.



Ad-hoc/Non Customer*: 0.50%-1% or NPR 3,000/-p.q. or part thereof whichever is higher.



*Note: Ad-hoc means the customer who does not have limit for the particular transaction or exceeds the limit. (Plus courier/communication charges as per STC)

5.1.2

Amendment for value / validity extension)

As per issuance commission above (Plus courier/ communication charges as per STC)

5.1.3

Other amendments as well as amendment for extension of value and validity within the quarter which has already been charged.

NPR 1,500/- flat for amendments other than enhancement of value and/or extension of validity, in which case charges shall be as per 5.1.1 above

Non-Corporate: NPR 2,000/- for amendments other than enhancement of value and/or extension of validity in which case charges shall be as per 5.1.1

Ad-hoc: NPR 2,500/-in all amendments except for enhancement of LC value and/or extension of validity in which case charges shall be as per 5.1.1 (Plus courier/communication charges as per STC)

5.1.4

Revolving L/Cs reinstatement Commission

Corporate: NPR 1,500/- at the time of reinstatement

Mid-Market: NPR 1,500/- at the time of reinstatement

Non Corporate: NPR 2,000/- at the time of reinstatement

Ad-hoc: NPR 2,500/- at the time of reinstatement

5.1.5

Documents under LC

NPR 1,000/- for each set of documents

5.1.6

Usance Bill Acceptance

Corporate: 0.025%-0.15% or NPR 1,500/- per month or part thereof whichever is higher.

Mid-Market: 0.05%-0.15% or NPR 1,500/- per month or part thereof, whichever is higher.

Non Corporate: 0.15%- 0.20% or NPR 2,000/- per month or part thereof whichever is higher.

Ad-hoc: 0.20%-0.30% or NPR 2,500/- per month or part there of whichever is higher.

(Plus courier/communication charges as per STC)

5.1.7

Discrepancy Fees Convertible FCY L/Cs INR L/Cs

NPR L/C (Domestic)

Convertible FCY L/Cs: USD 100/- or equivalent per set of Docs (Other CYs) INR L/Cs: INR 3,000/- per set of Docs


NPR L/C: (Domestic) NPR 3,500/- per set of Docs (Inland L/C) EUR L/C: EUR 75/- per set of Docs

GBP L/C: GBP 75/- per set of Docs

(Plus courier/communication charges as per section 6 of STC)

5.1.8

Issuance of Delivery Order against copy documents.

NPR 1,500/- per set of documents

5.1.9

Over drawn commission under Import L/C

0.50% on overdrawn amount or NPR 1,500/- whichever is Higher

5.1.10

Documents returned unpaid/unaccepted

NPR 1,500/- for each set of document

5.1.11

Request for copies of documents related to transactions closed for more than 6 months (except for LC

amendment)

NPR 2,500/-

5.1.12

Beneficiary's report from correspondent

bank

NPR 750 + Correspondent Bank’s Charge

5.1.13

Beneficiary’s report from Credit Agency

(for example D&B)

NPR 800 + Actual Cost

5.1.14

L/C settlement through own FCY A/C

NPR 0.05 per USD or min NPR 2,500/- (For other FCY, convert to equivalent USD)

5.1.15

Force IB settlement

NPR 2,500 /-

5.1.16

Interest rate on IB Loan

Highest published lending rate of the Bank

5.1.17

Stop Payment/Cancellation Charge of NRB Security

Margin Cheques

NPR 750 /-

5.2

Documentary Collection –Inward

5.2.1

Documents Against Payment (DAP)

1. At Sight:

Corporate: 0.10%-0.20% of documents value or NPR 1,500/- whichever is higher.

Mid-Market: 0.10%-0.25% of document value or NPR.1,500/-whichever is higher

Non corporate: 0.20%-0.30% of documents value or NPR 2,000/- whichever is higher.

Non customer: 0.25%-0.35% of documents value or NPR 2,500/- whichever is higher.



(Plus courier/communication charges as per STC)

5.2.2

Document Against Acceptance (DAA) Note: Without any payment obligation at maturity. Payment subject to receipt of funds from applicant.

Corporate: 0.025% or NPR 1,500/- per month or part thereof whichever is higher.


Mid-Market: 0.05% or NPR 1,500/- per month or part thereof, whichever is higher.


Non Corporate: 0.15% or NPR 2,000/- per month or part thereof whichever is higher.


Non-customer: 0.25% or NPR 2,500/- per month or part thereof whichever is higher.

(Plus courier/communication charges as per STC)

5.3.

Documentary Credit – Export

5.3.1

a) Documents Negotiation under sight

0.75% of Doc value. If not realized within 15 days, overdue Interest @ highest published interest rate under OD after 15 days till the date of realization is to be charged.

(Plus Courier/Communication charges as per STC)

5.3.2

b) Documents Negotiation under Usance

0.70% or minimum NPR 2,500 of Doc value; plus interest rate applicable to STL till the Usance period and after Usance period highest published interest rate under OD till the date of Realization (Plus courier/Communication charges as per STC)

5.3.3

Advising Export Letter of Credit or subsequent amendment for L/Cs to

be Negotiated with us.

NPR 2,500/-

(Plus Communication charges as per STC)

5.3.4

Advising Export Letter of Credit or subsequent amendment for L/Cs not to be negotiated with

us.

NPR 4,000/-

(Plus Communication charges as per STC)

5.3.5

L/C Transferring Charge

NPR 5,000/- flat per transfer

(Plus Communication charges as per STC)

5.3.6

L/C Cancellation Charge (unutilized)

NPR 2,500/ -flat plus SWIFT

5.3.7

L/C Confirming charge

Charge, subject to availability of bank limit to be confirmed with central credit.

Not to be less than 0.5% or NPR 5,000/- per quarter or part thereof (Plus Courier/Communication charges as per STC)

5.3.8

Cash Against Documents (CAD)

Permit

NPR 1,500/- for each permit

5.3.9

Cash Incentive documents processing

charge

NPR 1,500/- per set of export document

5.3.10

Export Refinancing document processing

NPR 1,500/- per set of export document

5.3.11

Letter to the Customs Office

NPR 1,500/- per letter

5.4

Documentary Collection –Outward

5.4.1

Cash Against Documents (CAD)

0.15% - 0.25% of document value or NPR 2,500/- whichever is higher

(Plus Courier/Communication charges as per)

5.4.2

Processing Export L/C under collection

0.15% of document value or min NPR 1,500/-

(Plus Courier/Communication charges as per)

5.5

Guarantees for SME Customers

5.5.1

Cash Margin, Commissions for entities involved in constructions and Contractor related Business

Maximum BG Limits: Rs.100Mn per unit/ group

BGWith Real Estate CollateralWithout Real Estate Collateral
TypeCash MarginCommission p.qCash MarginCommission p.q
BBNil0.35%25%*0.30% *


or min Rs.1200/- or part thereof whichever is higher
or min Rs.1200/- or part thereof whichever is higher
PBNil - 3% #0.40%50%*0.35% *
or min Rs.1000/- or part thereof whichever is higheror min Rs.1000/- or part thereof whichever is higher
APGNil -5% #0.45%100%0.40%


or min Rs.1500/- or part thereof whichever is higher
or min Rs.1500/- or part thereof whichever is higher
OthersNil - 5% #0.45%100%0.40%
or min Rs.1500/- or part thereof whichever is higheror min Rs.1500/- or part thereof whichever is higher

*Discount on Commission may be provided in proportionate with increase in cash margin.

# Cash Margin 3% & 5% is for Class C & D Contractors/Construction Companies.

5.5.2

Cash Margin & Commissions for issuance of Performance Guarantee on behalf of entities involved in Tourism related Businesses like Travels, Tours, Trekking, Money Exchange:

Maximum BG Limits: Rs.100Mn per unit/group

SegmentWith Real Estate CollateralWithout Real Estate Collateral
Cash MarginCommission p.qCash MarginCommission p.q
Tours/ TrekkingNil0.30%* or min Rs. 1200 /- or part thereof whichever is higher
20%*0.30%* or min Rs. 1200 /- or part thereof whichever is higher
Tours Travels (Ticketing)Nil0.30%* or min Rs. 1200 /- or part thereof whichever is higher
20%*0.30%* or min Rs. 1200 /- or part thereof whichever is higher
Money ExchangeNil0.30%* or min Rs. 1200 /- or part thereof whichever is higher
25%*0.30%* or min Rs. 1200 /- or part thereof whichever is higher
Foreign Currency TransactionNil0.40% or min Rs. 1200/- or part thereof whichever is higher100%0.35%* or min Rs. 1200 /- or part thereof whichever is higher

Discount on Commission may be provided in proportionate with increase in cash margin.


Cash Margin & Commissions for entities involved Education, Hotel, Health, Transportation, Automobiles, Agriculture, Trading & Wholesale& other business:

Maximum BG Limits: Rs.100M per unit/group

BGWith Real Estate CollateralWithout Real Estate Collateral
TypeCash MarginCommission p.qCash MarginCommission p.q
BBNil0.40%50%*0.35%*
or min Rs.1200/- or part thereof whichever is higheror min Rs.1200/- or part thereof whichever is higher
PB2-3%0.45%100%0.40%


or min Rs.1000/- or part thereof whichever is higher
or min Rs.1000/- or part thereof whichever is higher
APG3-5%0.50%100%0.45%


or min Rs.1500/- or part thereof whichever is higher
or min Rs.1500/- or part thereof whichever is higher
Others5-10%0.50%100%0.45%


or min Rs.1200/- or part thereof whichever is higher
or min Rs.1200/- or part thereof whichever is higher
Discount on Commission may be provided in proportionate with increase in cash margin.

5.5.4

BG issued in favor of Indian Embassy: Maximum BG Limits Rs.500,000/-

Particulars

Provision Relationship

New Relationship

Cash Margin (%)

10

100

Commission

0.40% p.q or min Rs.1200/- or part thereof whichever is higher

0.35% p.q or min Rs.1200/- or part thereof whichever is higher

5.5.5

BG issued for purpose of EXIM Code: Maximum BG Limits Rs.300,000/-

Particulars

Provision Relationship

New Relationship

Cash Margin (%)

10

100

Commission

0.40% p.q or min Rs.1500/- or part thereof whichever is higher

0.35% p.q or min Rs.1500/- or part thereof whichever is higher

5.6

Guarantees for Other Customers

5.6.1

Bid Bond

Corporate: 0.25% - 0.35% or NPR 1,000/- per quarter or part thereof whichever is higher.

Ad-hoc: 0.75% or NPR 1,500 /- per quarter or part thereof whichever is higher.

5.6.2

Performance Bond

Corporate: 0.3125% - 0.50% or NPR 1,000/- per quarter or part thereof whichever is higher.

Ad-hoc: 0.75% or NPR 1,500 /- per quarter or part thereof whichever is higher.

5.6.3

Advance Payment Guarantee

Corporate: 0.375% - 0.50% or NPR 1,500/- per quarter or part thereof whichever is higher.

Ad-hoc: 0.75% per quarter or NPR 2,500 /- per quarter or part thereof whichever is higher.

5.6.4

Issuance of Guarantee in favor of Court in Nepal


Without Real Estate Collateral

With Real Estate Collateral

Security

100% Cash Margin or 100% Fixed Deposit

Real Estate Collateral (Loan to Value Ratio: 60%)

Commission

2% p.a

5% p.a

Approving Authority

Chief Credit Officer (CCO)

5.6.5

Issuance of Guarantee against Counter Guarantee of Other Banks

0.3750% - 0.75% or NPR 1,000/- per quarter or part thereof whichever is higher plus commission/ charge of other bank plus out pocket expenses.

5.6.6

Shipping Indemnity

Seek specific approval on case to case basis.

5.6.7

Amendment for time extension within the quarter for which the commission has already

been charged

NPR 1,000/- flat plus communication charge

5.6.8

Amendment of terms other than value increase and/or validity extension

NPR 1,000/- flat plus communication charge

5.6.9

Amendment for value / validity extension

As per issuance commission above

5.6.10

Other amendment i.e., clauses etc.

NPR 1000/-

5.6.11

Guarantee Claim Handling charges (to be charged to the

Applicant)

NPR 1,000 plus other related charges

5.6.12

Guarantee Cancellation Charge

NPR 500

5.6.13

Reinstatement of cancelled Guarantees

NPR 2000/- plus issuance charges as per 5.5.1 / 5.5.2/ 5.5.3