Agricultural Development Bank Business Corporate Loans: Top Business Loan Solutions For SMEs In Nepal
10th July 2025, Kathmandu
Nepal’s banking sector actively supports business growth and entrepreneurship. Among leading banks, ADBL Agriculture Development Bank offers a diverse range of corporate and business loans. These products cater to various financial needs — from working capital management to large-scale infrastructure funding. Understanding these offerings is vital for businesses aiming to secure the right financing.
ADBL Business Corporate Loans
ADBL Agriculture Development Bank Business Corporate Loans
This detailed overview explains ADBL’s corporate and business loan options with longer, clear points. The style features short sentences, minimal passive voice, and keyword-rich subheadings to help readers navigate easily.
Wide-Ranging Corporate Loan Solutions for Registered Entities
ADBL extends customized loans to legally registered firms, companies, and organizations. Eligible borrowers must maintain regular registration renewals to qualify.
Corporate and Industry Loans: Supporting Capital Needs
These loans address both working capital and fixed capital requirements.
Working Capital Loans:
ADBL finances up to 80% of the borrower’s projected working capital needs. This funding supports day-to-day operations and short-term expenses. The loan is structured as a revolving credit facility with a maximum tenure of one year. Revolving loans allow businesses to draw, repay, and redraw funds within the credit limit during the tenure.
Fixed Capital Loans:
For business setup, expansion, or modernization projects, ADBL offers up to 70% financing on the total fixed capital cost. Unlike working capital loans, these are non-revolving and have longer tenures, extending up to 10 years. This loan type helps enterprises invest in infrastructure, machinery, and long-term assets.
Collateral and Security:
To secure these loans, the bank requires tangible assets such as land, buildings, and the project under development. Additionally, personal guarantees from business owners or promoters are common. These securities reduce the bank’s risk and ensure commitment.
Service Sector Financing: Meeting Operational And Growth Needs
ADBL also provides tailored loans for service-oriented businesses. These firms can access financing similar to that available for industrial enterprises.
Working Capital Funding:
Service providers can borrow up to 80% of their anticipated operational costs. This revolving loan has a tenure of one year and supports expenses such as salaries, utilities, and supplies.
Fixed Capital Financing:
The bank finances up to 70% of the capital required for service business development or expansion. Non-revolving and capped at 10 years, this funding helps in acquiring equipment, renovating premises, or launching new services.
Collateral:
Assets such as land, buildings, and ongoing projects are accepted. Personal guarantees also form part of the security package.
Renewable Energy and Hydropower Loan Schemes
Recognizing Nepal’s hydropower potential, ADBL offers dedicated financing solutions for renewable energy projects.
Applicant Eligibility:
Both Nepali citizens residing within the bank’s operating area and registered firms involved in hydropower or alternative energy qualify.
Working Capital Support:
Up to 80% of the operational working capital requirement is funded. The revolving loan spans one year, enabling smooth daily project operations.
Fixed Capital Loans:
For construction, equipment, and long-term investments, the bank finances up to 70% of the fixed capital cost. Loan tenures may extend up to 20 years, reflecting the long gestation period of energy projects.
Collateral Requirements:
Security includes project assets under construction, land and building ownership, and personal guarantees from promoters.
Financing for Business Complexes and Housing Developments
ADBL supports real estate developers and individual citizens engaged in building business complexes or housing projects.
Who Can Borrow:
Nepali individuals and registered development firms with valid renewals qualify to apply.
Loan Limits:
The bank finances up to 60% of the total estimated construction cost or purchase price of existing large properties. These figures are verified based on approved architectural or structural plans.
Loan Tenure and Nature:
This is a non-revolving loan with a maximum repayment period of 10 years, providing developers with a stable financing framework.
Collateral:
Security includes the property under construction, land, and personal guarantees.
Working Capital and Trade Finance Solutions
ADBL offers loan products to help businesses manage cash flow and trade operations smoothly. These loans provide flexible funding for daily expenses and import-export activities. By supporting liquidity needs, the bank enables businesses to meet payments on time and grow without financial hurdles.
Overdraft Facility for Corporate Clients
This flexible loan product caters to both individual entrepreneurs and institutional clients.
Eligibility:
Open to Nepali citizens residing permanently within the bank’s service area, and to registered firms, partnerships, and companies.
Loan Limits and Tenure:
Individuals may access up to NPR 7.5 million, while corporate clients can borrow up to NPR 10 million. The facility is revolving and has a one-year validity.
Collateral and Documentation:
Land and buildings typically secure these loans. Individuals must provide proof of income, while institutions need to submit comprehensive business plans and related documents.
Contractor Loan (Saral Thekka Patta): Specialized for Contract Businesses
This loan supports firms involved in contract-based projects, especially construction and service contracts.
Loan Limit:
The bank finances up to 50% of the remaining valid contract amount, easing cash flow during project execution.
Tenure and Nature:
The facility is revolving with a maximum duration of one year.
Security:
Land, buildings, and personal guarantees usually form the security package.
Hypothecation Loan: Inventory and Stock Financing
Businesses can fund goods in stock through this loan type.
Loan Amount:
Up to 50% of the inventory’s total value is available as financing.
Tenure:
This revolving facility lasts for a maximum of one year, allowing businesses to adjust borrowing according to inventory levels.
Collateral:
Besides the stock itself, accounts receivable, land, buildings, and personal guarantees secure the loan.
Bridge Gap Loan: Supporting Import-Export Operations
Designed to address temporary financing gaps in international trade, this loan aids firms with Letter of Credit (LC) transactions.
Eligibility:
Registered firms with LC limits or import needs are eligible.
Loan Limit:
The bank provides up to 70% of the approved LC or loan limit.
Loan Tenure:
This non-revolving loan is valid for up to 120 days, or as per Nepal Rastra Bank guidelines.
Collateral:
Imported goods, land, buildings, and personal guarantees secure the loan.
Export Loans: Facilitating Pre-shipment and Post-shipment Finance
To boost Nepal’s export sector, ADBL offers specific loans for exporters.
Eligible Clients:
Exporters with export licenses, confirmed orders, or LC facilities.
Loan Limits:
Both pre-shipment and post-shipment loans cover up to 70% of document value.
Tenure:
Non-revolving with terms up to 180 days or per Nepal Rastra Bank’s directives.
Collateral:
Includes export documents, goods, real estate, and personal guarantees.
Trust Receipt Loans for Importers
This loan product supports importers engaged in LC transactions.
Loan Amount:
Up to 70% of the LC limit is financed.
Tenure:
Non-revolving, valid for up to 120 days.
Security:
Goods imported, property, and personal guarantees secure the loan.
Advance on Credit (AOC): Bridging Payment Gaps in LC Settlements
This short-term facility assists importers with timely payments against Letters of Credit.
Loan Purpose:
To cover outstanding LC payments until the importer fulfills obligations.
Limit and Tenure:
The loan amount covers the remaining LC balance, valid for up to 90 days.
Collateral:
LC documents, land, buildings, and personal guarantees.
Credit Card Facilities for Personal Use
ADBL offers credit cards to trustworthy customers for personal financial needs.
Who Can Apply:
Citizens residing within the bank’s operating area.
Loan Limit:
Up to NPR 500,000 or 2.5 times the monthly income, whichever is lower.
Tenure:
Revolving credit facility with a one-year tenure.
Collateral:
Income proof and personal guarantees are required.
Guarantee Claim Loans: Backed by Bank Guarantees
These loans support clients who have obtained bank guarantees.
Loan Limit and Tenure:
The bank finances up to the guarantee amount, with a maximum term of 90 days.
Security:
Collateral includes land, buildings, and personal guarantees.
Wholesale Lending: Serving Institutions and Groups
ADBL provides lending solutions for development banks, financial institutions, associations, and private investors.
Loan Limits:
Individuals: Up to NPR 800,000 (short term) or 5 years (medium term).
Development Banks: Up to NPR 50 million (short-term revolving).
Financial Institutions: Loans up to NPR 10 million.
Associations and Groups: Up to NPR 5 million.
Private Money Lenders: Up to NPR 2.5 million.
Collateral:
Includes matching funds, land, buildings, and personal guarantees.
Choosing The Right Loan For Your Business
ADBL offers comprehensive loan products suited for diverse business needs in Nepal. Selecting the ideal loan depends on your business size, industry, financial status, and project goals. Evaluate the differences between revolving and non-revolving loans, collateral demands, and loan tenure before applying.
Engage with bank officials or financial advisors to tailor the financing structure that fits your growth plans. With the right support from ADBL Agriculture Development Bank, Nepali businesses can confidently expand and achieve sustainable success.
For more:- ADBL Business Corporate Loans
