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AN ANALYSIS ON LENDING PROCEDURE OF HIMALAYAN BANK LIMITED BUTWAL

By
Binam Shrees T.U. Reg. No. Exam Roll No.

A Projectwork Report

Submitted to Tribhuvan University Manimukunda College, Butwal

in partial fulfillment of the requirement for the degree of Bachelor of Business Studies

Butwal Bhadra

Faculty of Management

Tribhuvan University

RECOMMENDATION

This is to certify that the projectwork assignment report

Submitted by Binam Shrees T.U. Reg. No. Exam Roll No.

entitled

An Analysis on Lending Procedure

A Case of Himalayan Bank Ltd, Butwal has been prepared as approved by this department. This project work assignment report is forwarded for examination.

-------------------------------Mr. Sanjeev Shrestha Supervisor

---------------------------------------Tuk Bahadur Kshettri Manimukunda college,Butwal-13

TABLE OF CONTENTS

Acknowledgement List of Abbreviations List of Tables List of Figures Tables of contents

I II III IV V

Chapters

Page No. 1-

1. INTRODUCTION
1.1 Background of the Study 1 1.2 Significance of the Study 1.3 Literature Review .... 1.4 Objectives of the Study 1.5 Methodology of the Study 1.6 Limitations of the Study

2. DATA PRESENTATION AND ANALYSIS .

2.1 Presentation and Analysis of Data 2.2 Major Findings of the Study .

6-

3. SUMMARY AND CONCLUSIONS

3.1 Summary 3.2 conclusions 3.2 Recommendations ..

Bibliography Appendix

PROPOSAL ON An Analysis On Lending Procedure Of Himalayan Bank Limited, Butwal

1.1 Background of the Study

Loan is a type of investment which investor gets back with interest after the prementioned maturity period. Borrower has to pay the interest that may be any specific rate to the investor. After collecting various documents a final decision can accept or reject the borrowers proposal. The loan lending procedure provides analysis and comparison of mortgages and other installment loans. It enables you to input contract terms for any number of loans and analyze and compare various financing alternatives analyze for different types of loan contracts: fixed rate, adjustable rate, buy down rate and balloon rate. Loan may also be provided on the security backing of fixed time deposits certificates. Himalayan Bank Ltd. is one of the commercial banks which was established on 18th January 1993. This bank has been providing several things of services such as: employment opportunity, loan to farmer, loan to tender industrial loan to enterprises & providing loan at cheaper rate of interest. The bank charges interest on loans, which are usually higher than those offered on other deposits. Since the banks in Nepal are now free to fix interest rates, the rate of interest on loans varies from bank to bank.

1.2 Literature Study

Literature review is the descriptive analysis of any specific topic which is related only to that topic and gives more essential information. Robert in 2001 states, Loan approval procedure is one of the pillars of the organization on which most of the banking activities are based on. Brealey, R.A. and S.C. Myers in 1999 states, Lending policy is designed to remove any possible conflict of interest between us and our clients, while giving our borrowers the ability to strike the balance that they want between risk, upfront costs and long-term interest rates. Lending of loan to the client is one of the important aspects of the bank. The procedure by which bank lends the loan determines the profitability and success of the bank. The procedure by which the loan is granted should have some strict rules and regulations.

1.3 Objectives of the study

The main objective of the report is to know the several kinds of information about the bank which are as follows: To analyze the lending procedure of followed by the bank for investment. To evaluate sectorial investment of the bank . To explore the position of the loan recovery. To analyze the rate of interest on different types of loan.

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