Loan against Government Bonds

The Bank can extend loans against various Bonds / Stocks/ Promissory notes issued by the Government/ Nepal Rastra Bank. Generally, upto 90% of the value of such Bonds will be disbursed as Loan. But no loans shall be sanctioned against Government/ NRB Bonds which are specially marked as ones against which loans can not be granted.

Similarly, the Bank can extend loans against bonds issued by commercial Banks for fulfillment of their regulatory capital requirement.