Global IME Bank introduces special housing loan scheme with 9.99% fixed interest rate

KATHMANDU: Global IME Bank Limited has made its special housing loan scheme public, offering a maximum loan of up to Rs 120 million at a stable interest rate of 9.99% for a period of up to 10 years.

The bank has extended the ‘regulatory retail portfolio’ threshold, allowing loans of up to Rs 20 million for agriculture and small, cottage, and medium enterprises. This credit, falling under the regulatory retail portfolio, carries only 75% of the risk weightage, easing pressure on the capital adequacy fund. Despite this increase, bankers have advocated for further raising the threshold to Rs 30 million.

Furthermore, the bank has granted flexibility in interest rates, allowing a one percent difference between fixed accounts for institutional and individual deposits. Previously, the interest rates on institutional fixed deposits were mandated to be two percent less than those on personal deposits within the category.

Although policy rates, including the cash reserve ratio and statutory liquidity ratio, remain unchanged, these proactive measures aim to address the growing challenges faced by banks.

Under this special housing loan scheme, customers can avail themselves of loans at a fixed interest rate of 9.99% for up to 10 years, 10.49% for 10 to 15 years, and 10.99% for over 15 years, with a maximum loan amount of Rs 120 million.

To streamline the loan application process, the bank has committed to process necessary documents presented within two working days, emphasizing a quick, easy, and seamless flow of credit.

Customers across 77 districts with 356 branches of the bank can benefit from this facility. The bank, the first commercial bank in the private sector with a network in all seven provinces, serves over 4.5 million customers through its 356 branches, 378 ATMs, 274 branchless banking services, 65 extensions, and 3 representative offices abroad.

Additionally, Global IME Bank has contributed significantly to the country’s economy through remittances from various countries, including the United States, the United Kingdom, Canada, Australia, Malaysia, South Korea, Japan, Saudi Arabia, Qatar, UAE, Bahrain, India, Jordan, Hong Kong, among others.