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Loans for purchasing shares on stock market

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Auto loans This Nepal Bank loan is provided for:
- Purchase of new vehicles
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- Swapping (For Private and Commercialuse use). Some of criteria for taking auto-loans are as follows.
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-This is provided to any salaried and self-employed individuals and companies.
Car finance by Nabil bank
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Vehicle loans by CEFI
Loans to finance heavy commercial vehicles, Private Car, Jeep, Pickup, and taxis
 

Banks in Nepal
Nepal credit & commerce bank
Nepal Investment Bank
Laxmi bank
Lumbini bank

Siddhartha bank limited
Machha Puchchhre bank
Nic bank - life savings account
NIC Life savings account for ensuring of your savings, high return & your financial & personal security
Bank of Kathmandu
Standard Chartered
Nepal merchant bank & fin.
Development credit bank

 

 

News item 17-2-2007

Suman Neupane has invested over five million rupees on shares with loans from banks and finance companies. He is now a happy man; his investment continues to spin money, as prices of shares he owns continue to move upward. Equally euphoric are financial institutions that lent him because they have found margin lending-loans as another lucrative investment instrument. But, neither Neupane nor the lending institutions seem to be carefully examining the risks involved while extending huge loans for purchasing shares. They have hardly bothered to analyze what will happen if the stock market crashes. The institutions have found the going easy on margin lending, as they are not regulated by the central bank. Like Neupane, thousands of people have put money in shares, taking loans from the financial institutions. Though there is no official data about total investment under margin lending, it is expected to be several billion rupees. Financial institutions are issuing loan up to 80 percent of the market value of shares to buy the shares. During the initial public offering (IPO) of shares, they invest up to 95 percent of the shares' face value. Mostly, the institutions keep shares as collateral so they have nothing to seize or to resort to when the share market shrinks. “I have now applied Gurkha Bank's shares worth of Rs 150 million of which 95 percent has been financed by loans from finance companies,” said Govinda Bhandari, who works at a private company. “It is beyond my capacity to make a large investment on shares, if the loans were not available.” Drawing loans against shares is incredibly easier. The aspirant investors do not require any stringent documents.

 

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Other banking news and articles:


Pashupati Development Bank goes public (14-7-2008)
Sunrise bank in Gabahal Lalitpur (27-6-2008)

NIC banks in Lahan (14-6-2008)
NBL starts e-banking (10-6-2008)
Nepal merchant bank - the 25th commercial bank in Nepal (3-6-2008)
Development Credit Bank start operations as grade ‘A’ commercial bank (24-5-2008)

Per capita income Nepal reaches $470 (10-06-2008)
Hama launches new saving scheme (04-06-2008)
Five financial institutions in Nepal merge (30-4-2008)
4 years Birgunj Finance (1-10-2007)
foreign employment insurance scheme forwarded to Ministry of Finance (26-8-2007)

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