Employee Loan

Employee Loan

This loan is provided to regular employees working in the institution for the purchase of vehicles (motorcycles, cars) necessary for work, as well as for the construction of residential houses and the purchase of land. Such loans can be availed up to two times during the service period. To qualify for this loan, the employee must have completed two continuous years of service in the institution.

Eligibility Criteria:

1.       The applicant must be a regular employee.

2.       The vehicle purchased will be registered in the institution's name until the loan is fully repaid. For land purchase and residential construction, the property must be registered in the name of the employee or their spouse or family member, and the land must be provided as collateral.

3.       The employee must insure the vehicle as per regulations.

4.       The employee must continue to pay the vehicle tax as required.

5.       In case of an accident or theft of the vehicle, the employee or their family must bear the loss.

6.       Priority will be given to diligent employees with excellent performance evaluations in the institution's work.

7.       The employee must invest at least 20% of the vehicle's cost personally.

Loan Limit:

The maximum loan amount for this type of loan will be either equivalent to 72 months of the employee's salary or up to NPR 3,000,000 (three million), whichever is lower.

Loan Tenure:

  • For purchasing motorcycles: up to 4 years.
  • For purchasing cars, land, and residential construction: up to 10 years.
  • If an employee retires before the loan term is completed or sells the vehicle or property, they must repay the full outstanding principal and interest before retiring.

Grace Period:

  • No grace period is provided for hire purchase loans.
  • For loans for residential and land purchases, a grace period of up to 3 months may be provided, during which interest must still be paid according to the installment schedule.

Repayment Method:

The loan must be repaid in mandatory monthly installments (covering both principal and interest). Deductions will be made from the employee's salary at the end of each month. The interest rate for such loans will be determined by adding 2% to the standard savings interest rate, and no development fees will be charged for this type of loan.