Auction Financing Loan

Auction Financing Loan has been developed so that the Institution can finance the properties to be auctioned by the BFIs or Institution itself if the proposals found to be bankable.

Features

Interest Rate As per published rate
Processing Fee  1.25% of the total loan amount or as decided by the Management from time to time as per NRB Directives
Repayment

On Equal Monthly Installments (EMI) basis as agreed by both the parties. 
Collateral  The property to be purchased through auction process and personal guarantee. 

Documents:

In case of Real Estate Collateral:

  • Land Ownership Certificate
  • Land Revenue Paid Receipt
  • Survey Trace Map
  • Four Boundary Certified Letter from Metropolitan/ Sub-Metropolitan City / Municipality / VDC
  • Land Registration / Ownership Transferred Document to assess the cooling off period of real estate collateral
  • Valuation Report and Collateral Site Visit Report

In case of Vehicle:

  • Copy of Blue Book / Copy of Vehicle Test Certificate
  • Route Permit in case of the vehicle to be used for public transportation
  • Green Plate using approval in case of the vehicle to be used for promoting tourism
  • Valuation Report

In case of Shares

  • Shares Demat slip(s) assigned / pledged to the Institution
  • Fit and Proper Test related documents in case of promoter shares

Other Documents

  • Copy of Citizenship Certificates of the borrower and the personal guarantor in case of Individuals and registration documents in case of firms / companies
  • Income Source Providing Documents in case of individuals and financials and tax clearance certificate where applicable in case of firm / companies
  • Board’s / Partner’s decision in case of Companies / Partnership Firms 
  • Other documents as per nature of the credit proposal 
  • Residence Site Visit Report and Family Tree
  • Personal Net-worth of the borrower and Guarantor
  • Clean CICL Report 
  • Letter of confirmation from the collateral auctioning BFI that the collateral related documents shall be handed over to the staff of the Institution (Best Finance) after settlement of the loan.
  • Letter from the respective government office (Land Revenue Office /Transport Management Office / Share Registrar’s Office) mentioning that there is not the second encumbrance in addition to encumbrance of collateral auctioning BFI
  • Letter of Indemnity from the customer that he/she/it shall fully indemnify the Institution (Best Finance) for disbursing the loan in his/her/its favor before mortgaging of the collateral