NIC ASIA BANK presents loans against share facilities where customers can avail loans for ordinary shares of banks/ financial institutions, insurance companies, and various other companies listed on the Nepal Stock Exchange. The loan is offered up to 70 percent of the average market price of 180 days' share or last traded price whichever is less. Under this scheme the bank has made the arrangement to avail a loan amount from a minimum of Rs. 10 million to a maximum of Rs. up to Rs. 40 million. Also, customers can Under this scheme there is a facility to take an overdraft loan up to Rs 5 million.

Key Highlights of amendments have been depicted below:
1.    Interest Rate: As per published
2.    Loan Administration Fee: 0.75%
3.    Loan to Value: Maximum of 70% of lower of last trading price of share or average of 180 days price of the share (Detailed as per annexure).
4.    Method of Valuation: Lower of last trading price of share or average of 180 days price of shares to be pledged as security.
5.    Loan Facility Type: Demand Loan and/ or Overdraft loan
6.    Loan Amount: Minimum loan amount - NPR 10 million and 
  Maximum Loan Amount - NPR 40 Million (for Individual, Company, and Group).  
7.    Loan Mix: Overdraft shall not exceed NPR 5 Million and Mix of Overdraft and demand loan shall not exceed 120 Million. 
8.     Acceptable Security: Shares of the companies which are included in the acceptable
list of companies of the Bank (as presented in Annexure) and such shares must be in dematerialized form for underwriting fresh Loan Against Share. I .e. A-Class Commercial Banks, B Class National Level Development Banks, C class national level finance companies, D class national level Microfinance, Life and Nonlife insurance companies, Others (Bottlers Nepal Ltd. (Balaju), Bottlers Nepal Ltd. (Terai), Unilever Nepal Ltd., Nepal Doorsanchar Co. Ltd., Citizen Investment Trust, Nepal Reinsurance Company Limited, Shivam Cement Limited)
9.    Non- Acceptable Securities:
The list of non-acceptable securities are:
a.    Promoter Shares of all types
b.    Mutual Funds
c.    Hydropower Companies
d.    Hotels
e.    Shares of Investment Companies. Eg: NRN Infrastructure and Development Limited.
f.    Script of companies under merger whose trading is halted for the time being.
g.    Shares having Market Value less than Par Value
h.    Companies having Negative Net-worth and also shares restricted to be considered by NRB Directive for margin lending.

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