Garima Bikas Bank: A Comprehensive Guide to its Loan Products

17th August 2025, Kathmandu

Garima Bikas Bank offers a wide range of loan products tailored to meet the diverse financial needs of individuals, entrepreneurs, and firms across Nepal.

Garima Bank’s Loan Products

From supporting small and medium-sized enterprises (SMEs) to financing higher education and personal vehicle purchases, the bank’s loan portfolio is designed to be comprehensive and flexible. Each loan product comes with specific features regarding its purpose, limit, tenure, repayment structure, and eligibility criteria, making it crucial for prospective borrowers to understand the details before applying. This guide provides an in-depth look at the various loan offerings from Garima Bikas Bank.

1. Loans for Businesses and Enterprises

Garima Bikas Bank is a strong supporter of Nepal’s business community, with several loan products designed to fuel growth and operational efficiency.

Service Business Loan: This loan is specifically for firms in service sectors such as education, tourism, health, and entertainment. It offers a substantial loan limit starting from NPR 10 million, with a flexible tenure of one year for overdrafts (renewable) and up to 15 years for term loans. The bank finances up to 70% of the Net Working Capital for working capital loans and up to 80% of total assets for term loans. Eligibility is broad, including both new and established firms.

SME Loan: Aimed at Small and Medium Enterprises, this loan is designed to meet a variety of business needs, from launching new products to expanding operations. With a loan limit ranging from NPR 1 million to NPR 20 million, it provides a crucial financial lifeline for SMEs. The loan can be taken as a revolving loan with a maximum one-year renewable tenure or a term loan for up to 15 years. Financing can cover up to 70% of Net Working Capital for working capital needs and up to 80% of total assets for term loans.

Business Short Term / Term Loan: This product is ideal for manufacturing and service units requiring a minimum of NPR 10 million for working capital or capital asset financing. The tenure for short-term loans is up to one year (renewable), while term loans can extend up to 20 years. The bank finances up to 70% of the total project cost, contingent on a feasibility study and adequate insurance.

Agriculture Loan: Recognizing the importance of the agricultural sector, this loan is designed for firms involved in the production and distribution of agricultural products, including the purchase of machinery and tractors. The loan limit starts from NPR 0.3 million and can go up to the single obligor limit. Tenure varies: one year for overdrafts, up to 10 years for term loans, and a maximum of 5 years for tractors and agricultural machinery.

2. Loans for Individual and Personal Needs

Beyond business financing, Garima Bikas Bank provides a suite of loans for personal aspirations, including homeownership, vehicle purchase, and education.

Real Estate Loan: This loan is for individuals or registered firms looking to purchase and develop land. The loan limit begins at NPR 1 million, with a maximum tenure of 15 years. The financing ratio is up to 40% of the Fair Market Value (FMV) for properties within Kathmandu Valley and 50% for those outside. This is a key offering for anyone looking to invest in property or build a home.

Auto Loan: For those dreaming of owning a personal vehicle, Garima Bikas Bank’s auto loan is a viable option. It offers a loan limit from NPR 1 million up to the single obligor limit, with a maximum tenure of 10 years. A standout feature is the more favorable financing for eco-friendly vehicles: the bank finances up to 80% of the cost for electric vehicles, compared to 50% for new or second-hand vehicles. This aligns with the global shift towards sustainable transportation.

Education Loan: This loan is designed to support students pursuing higher, technical, or professional education. The loan limit is between NPR 0.15 million and NPR 0.50 million, with a maximum tenure of 10 years, which includes a one-year grace period. Eligibility is open to students aged 18-35, with parents or sponsors up to 70 years old.

Hire Purchase Loan: Distinct from the auto loan, the hire purchase loan is specifically for the acquisition of commercial or public vehicles. The loan limit starts at NPR 0.3 million. The tenure is up to 8 years for new vehicles, with the tenure for old vehicles adjusted based on the manufacturing year. The bank finances up to 75% of the cost for new vehicles and up to 70% for second-hand ones.

3. Simplified Documentation and Application Process

For all its loan products, Garima Bikas Bank has streamlined the documentation process. While specific documents vary by loan type, a common set of requirements includes a completed loan application form, business registration papers, PAN, tax clearance certificates, financial statements, and details of the collateral and guarantors. This standardization aims to make the application process as smooth and efficient as possible for borrowers.

Conclusion

Garima Bikas Bank’s diverse loan portfolio demonstrates its commitment to serving a wide range of customers, from small business owners to individuals with personal financial goals. With competitive financing options for both business and personal needs, and a special focus on promoting electric vehicles through higher financing, the bank is positioning itself as a key financial partner for Nepal’s economic growth. Whether you are an entrepreneur looking to expand, a student pursuing higher education, or an individual planning to buy a vehicle, Garima Bikas Bank offers a tailored loan solution to help you achieve your aspirations.