Civil Bank Loan against Shares

Civil Loan against Shares (CiLS) is a product designed to cater to the various financing requirements of various types of individual and investment firms.

Basic Eligibility Criteria

Lending in Shares has been highly regulated by the NRB. As such there are various requirements to be met by the Bank as well as the Borrowers.

  • Company whose share will be pledged to the Bank must be listed in the NEPSE.
  • Limits will be subjected to a maximum of 60% of the average of the last 180 days, closing price or latest closing price, whichever is lower.
  • The primary capital/net worth of the company whose shares are proposed as security should be in the positive.
  • If the proposed shares are of banks/financial institutions, CAR of the same must be within the norms set by NRB. Also the auditing of the bank/financial institution should have been made as required by the NRB directives.
  • CiBL's total exposure on margin lending, including the proposed lending, should exceed its core capital.
  • Total exposure against the shares of a specified listed company should not exceed 25% of the core capital of the Bank.
  • Original share certificates should be deposited to the Bank.
  • Loan against shares should not be provided for renewal/restructuring/rescheduling of an existing limit.
  • The borrower/guarantor or their family member should not be a director/CEO/Auditor/Secretary involved in the management or accounting of the company whose shares have been proposed to pledge for the loan.
  • The loan limit will be assigned for a period of one year on terminating basis. It will be non renewable.
  • Applicant should have adequate sources of income to service the debt and meet the margin call requirements as and when required.


Product Details:

Types of CiLS:

CiLS will be revolving in nature and shall be booked of overdraft facility in nature.

Loan Limit

  • The minimum limit of CiLS is NPR 100,000.00.
  • The maximum limit of CiLS is NPR 50,000,000.

Loan Tenure
The loan tenure for CiLS (Revolving) in the form of an overdraft shall be for maximum period of 1 year. This facility cannot be renewed on maturity and the loan has to be settled on maturity. However interest will be paid on a quarterly basis.

Interest Rate
Interest rate on CiLS will be decided by the competent authority from time to time.