Kumari Bank Issues 35-Day Loan Settlement Notice to Borrowers

17th November 2025, Kathmandu

Kumari Bank Limited has issued a forceful 35-day public notice to several non-performing borrowers, requiring them to immediately clear their outstanding loan balances.

KBL Loan Settlement Notice

The final notice was published on 1 Mangsir 2082, following repeated failures by the listed borrowers to settle their financial obligations.

This move is a necessary step taken by the bank to commence the formal and legal recovery process, ensuring compliance with prevailing laws and directives issued by Nepal Rastra Bank (NRB). The bank explicitly states that all verbal and written reminders have been disregarded by the defaulters.

Final Instructions and Consequences for Default

The public notice serves as the ultimate warning, providing the borrowers with a 35-day window from the date of publication to rectify their defaults.

Instructions to Borrowers

The identified borrowers are mandated to contact their respective branch of Kumari Bank Limited and fully repay the following amounts within 35 days of the notice publication:

• Principal: The original loan amount outstanding.
• Interest: All accrued interest charges up to the date of settlement.
• Any Applicable Charges: This includes penalty interest, late fees, and any other administrative or legal charges incurred by the bank during the default period.

Consequences of Failure to Comply

If the borrowers fail to comply with this final deadline, Kumari Bank Limited will proceed with aggressive recovery actions as per legal provisions:

Recovery Proceedings: The bank will initiate recovery proceedings in accordance with prevailing Nepalese laws and the strict directives of Nepal Rastra Bank.

Collateral Management: The mortgaged movable and immovable properties—which include land, houses, and all assets under hypothecation—will be auctioned or managed for the purpose of recovering the outstanding dues.

Blacklisting: The defaulting borrowers and all associated parties (guarantors) will be reported and listed in the Credit Information Bureau (CIB), effectively blacklisting them from accessing credit facilities from any bank or financial institution in Nepal in the future.

Personal Asset Recovery: Crucially, if the proceeds from the sale or management of the primary collateral do not cover the total outstanding amount, the bank reserves the right to recover the remaining dues from the personal assets of the borrowers, guarantors, and all associated persons.

Summary of Major Defaulters and Collateral

The notice explicitly names the defaulting firms and individuals along with the collateral pledged against their loans.

1. Amit Kirana and General Store

Proprietor: Shiva Kumar Sah.

Registration: The firm is registered under the Private Firm Registration Act and is located in Sarlahi.

Collateral: The collateral includes land and a house located at Gangapur Sitapur, Sarlahi (Kitta No. 830, Area 0-0-10). Additionally, all movable and immovable assets under hypothecation are pledged.

Guarantors: The loan is personally guaranteed by Shiv Kumar Sah, Amit Kumar Sah, Raj Kumar Sah, and Usha Devi.

2. Sujal Ayurveda Medical Hall

Proprietor: Shailendra Mahato.

Registration: The hall is registered under the Drugs Act and is located in Sarlahi.

Collateral: The collateral includes land and a house at Gangapur Sitapur, Sarlahi (Kitta No. 2135, Area 0-0-10). As with the previous loan, all movable and immovable assets under hypothecation are pledged.

Guarantors: The guarantors include Laxmi Kumari and Shailendra Mahato.

3. Individual Borrowers

Borrowers: Shiva Kumal and Shailendra Mahato (residing in Nawalpur / Sarlahi).

Collateral/Guarantees: The loan is secured through personal guarantee and hypothecation.

Guarantor: The specific guarantor listed for this individual loan is Diya Shrestha.

Bank Contact Information

For borrowers wishing to settle their dues or seek further clarification regarding the repayment process, they should contact the Loan Recovery Department at the bank’s head office:

Kumari Bank Limited

Department: Loan Recovery Department, Bagbazar, Kathmandu

Phone: 01-5346991

This public disclosure serves as the bank’s final step to recover non-performing assets through external legal mechanisms, upholding financial discipline and protecting depositors’ interests.

For More: KBL Loan Settlement Notice