Required Documents

After identifying the appropriate source for the entrepreneur’s funding needs and ensuring one is eligible for the business loan, the next step is to collect the necessary documents. The documents required will vary from one bank to another. Our experience suggests that the banks can request some or all of the following documents:

  • Application Form
  • Valid proof of Applicant’s Identity ( E.g.: Citizenship/ Passport)
  • Passport size photographs of the applicant, the guarantor(s)
  • Loan request details ( How much you need/ How the money will be used/ Loan Period)
  • Audited Financial Documents (Balance Sheet, Cash flow Statement, Income Statements)
  • Business Legal documents ( Business Registration, PAN Registration Certificate)
  • Tax Returns (Personal and Business)
  • Business Plan 
  • Bank declarations (Issued by the customer’s bank stating their account number and balance)
  • Other documents specified by the Bank from time to time

Once eligibility requirements are fulfilled and the necessary documents are collected, the entrepreneur can approach the bank for a business loan.

Nepal Rastra Bank (NRB) has raised the lending requirement to 25% for commercial banks towards “productive sectors” that encompasses hydropower, agriculture, tourism, export, small and medium industries, pharmaceuticals, cement, and garments. The updated monetary policy requires commercial banks to allocate 10% of total lending in agriculture, 5% in hydropower, 5% in tourism and remaining 5% in other sectors. Entrepreneurs with their businesses in these sectors can benefit from this policy and increase their chances of getting approved for a loan through commercial banks.