Everest Bank SME Loan Nepal: Easy Business Loans For Startups And Small Enterprises
6th July 2025, Kathmandu
Everest Bank Limited (EBL) has rolled out a powerful SME loan to support small and medium enterprises across Nepal. With competitive rates, flexible terms, and tailored facilities, the bank aims to drive business growth, build financial inclusion, and boost economic development.
Everest Bank SME Loan Nepal
Who Is Eligible: SMEs, Startups, and More
Existing SMEs must be registered with government bodies and have at least two years of profitable operations—positive cash profits also count.
Start-up businesses can also qualify. They require legal registration and must have key persons with at least two years of relevant industry experience.
In both cases, EBL defines an SME as a unit with paid-up capital up to NPR 100 lakh, covering micro and cottage industries too. This broad definition allows a wide range of businesses to access financing.
Loan Offerings: From Working Capital To Term Funding
EBL’s SME loan tackles both short-term and long-term funding needs:
Working capital solutions such as overdrafts (OD), short-term demand loans (STDL), term loans with revolving features, trust receipts (TR), letters of credit (LC), and bank guarantees (BG). These help businesses maintain liquidity and manage seasonal needs.
Term loans cater to capital expenditures like machinery purchases, process upgrades, and asset expansion.
Loan limits depend on business maturity:
Existing enterprises: Up to NPR 500 lakh.
New start-ups: Up to NPR 250 lakh.
This scalable structure ensures businesses receive financing tailored to their growth stage and needs.
Competitive Interest Rates & Cost-Efficient Financing
Interest rates are competitive and tied to market benchmarks. EBL offers SME loans at the base rate plus 1%–3%. With Nepal’s base rate standing around 5.38%, SMEs gain access to affordable financing, approximately in the range of 6.38%–8.38%.
This makes Everest Bank’s SME Loan an attractive option compared to other commercial lenders, helping reduce borrowing costs and encouraging growth.
Smart Collateral Structure: Ensuring Mutual Protection
EBL emphasizes strong collateral policies:
Working capital loans are secured via hypothecation of inventory, receivables, and current assets.
Term loans rely on the hypothecation of financed fixed assets.
Non-fund facilities like LC/BG require reasonable cash margins.
Additionally, existing businesses must place immovable property as collateral amounting to 125% of the loan. Start-ups face a 150% requirement, which remains under branch-level endorsement. These measures are designed to protect both EBL and its borrowers.
Flexible Repayment And Insurance Requirements
EBL prioritizes borrower convenience through flexible repayment options:
Working capital loans renew annually, subject to performance reviews.
Term loans offer up to a 10-year repayment period.
To safeguard financed assets, the bank mandates a comprehensive insurance policy, in line with standard banking practices.
Nationwide Access And Digital Integration
With over 127 branches and a partnership with Punjab National Bank, EBL ensures broad geographic coverage, including rural and underbanked areas.
The bank also supports digital and mobile banking, which:
Simplifies loan application processes
Reduces paperwork via online KYC
Speeds up the disbursement of funds
Enables LO/LC/BG issuance directly through the system
This digital-first approach enhances service quality and operational efficiency.
Driving SME Growth And Economic Development
Everest Bank promotes this loan facility to spur SME growth, industrial output, and employment. Through working capital financing, businesses can maintain smooth operations and meet order demands. Term financing allows investment in technology and physical assets, fostering competitiveness.
Moreover, EBL positions its SME loan as:
A tool for financial inclusion in rural and underserved regions
A bridge to formal financial systems for micro enterprises
A source of entrepreneurial support for start-ups
Industry Response And Growth Potential
The SME loan has already attracted attention from businesses involved in:
Trading that requires liquidity for imports
Manufacturers seeking machinery upgrades
Service-sector firms managing payroll and expansion
Agri-businesses aiming for processing units
Many clients have praised the bank’s flexible limits, affordable interest, and straightforward collateral terms.
What Businesses Should Do Next?
SMEs eager to apply should:
Visit the nearest EBL branch or access its digital portal.
Gather business registration documentation, financial records, and proof of ownership.
Choose the right loan type (WC or TL) and preferred repayment tenure.
Apply with collateral details.
Await branch review, disbursement, and begin repayments as agreed.
EBL also offers advisory services to help businesses choose the right financing solutions and create realistic business plans.
The Bigger Picture: SME Loans As Growth Catalysts
Everest Bank’s SME loan program aligns with national goals of stimulating economic growth through enterprise development. By enabling businesses to expand, the loan strengthens market competition, builds local industries, and contributes to job creation.
Moreover, credit products like this promote financial literacy and encourage formal financial engagement among small entrepreneurs and traders.
Final Takeaway
Everest Bank’s SME Loan represents a robust financial tool for Nepalese SMEs. With flexible loan structures, competitive rates, reliable collateral policies, and national coverage, it effectively meets the nuanced needs of growing businesses.
Whether it’s short-term cash flow management or long-term capital investment, Everest Bank stands ready as a key SME partner. The initiative signals the bank’s commitment to empowering entrepreneurs, accelerating economic growth, and advancing financial inclusion—one successful small enterprise at a time.
For more:- Everest Bank SME Loan Nepal
