Ballooning & Reverse Ballooning (Home Loan)

NMB Ballooning Housing Loan

This is a unique variant of housing loan that facilitates repayment of principal on Home Loans with a flexible approach that allows for EMI payment on part of the loan while the other part of the loan can be settled in bulk on yearly basis.

NMB Reverse Ballooning

The Reverse Ballooning loan option allows repayment of principal on Home Loans by a unique modality which allows for EMI to diminish over every 5 to 10 years as chosen and required by the customer.

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Customer Segment

1. Ballooning Housing Loan
   • Salaried individuals - Employees of organization having stable and regular income with at least one time bulk income (bonus, welfare etc.) at certain point/s in a year
2. Reverse Ballooning Housing Loan
• Salaried individuals - Self-Employed Professional/Businessmen - Borrowers able to pay higher EMI in beginning so that savings can be invested in other areas during tow EMI periods

Basic Documentation (as applicable)

1. Identification Documentation
   • Photograph and copy of citizenship of the applicant/sponsor/guarantor
   • Copy of Individual PAN certificate (where applicable)
   • Map of the applicants’/sponsor’s/guarantor’s residence
   • Net worth statement of applicant/guarantor/sponsor
2. Income related documents
   • For salaried individuals
     • Salary certificate from the employed organization/company (not older than 3 months).
     • Bank Statement, as applicable.
     • Latest two salary slips (if any).
   • For self-employed professionals
     • Certificate of registered professional
     • Detail of income source/ profession
     • Proof of last 3 years of continuous practice (if any)
     • Bank Statement, as applicable
• For business person
  • Latest audited financial statement as per prevailing Company/Tax Act of Nepal.
  • Bank Statement, as applicable.
  • Certificate of Incorporation (in case of organization)
  • Valid Firm/Company registration certificate.
  • MOA/AOA, Share Lagat, partnership deed (as applicable)
  • Recent tax paid receipt.

Other Documents

• Copy of Land transfer deed (Rajinama)
• Copy of Latest land revenue receipt
• Original copy of blueprint, trace map of the location where property is located
• Copy of char killapramanit (4 Boundary demarcation) from ward office/VDC
• Original/copy of approved structure design from Municipality (Naksa Pass) and / or VDC
• Construction completed certificate for buildings wherever applicable
• Copy of registration certificate of concerned association/organization (in case of professionals such as Engineers, Doctors, Chartered Accountants etc.

Security Documentation

• Original Credit Facility offer letter signed by borrower and acknowledged by guarantors
• Loan deed (Tamasuk)
• Personal / Corporate guarantee of guarantors
• Collateral ownership certificate of the borrower (Lalpurja)
• Registered Mortgage Deed (DhitoDristibandhaki)
• Promissory note signed by the borrower converting the loan amount
• Ownership transfer deed (Rajinama), mandatory in case of outright purchase
• Original insurance premium paid receipt with policy
• Complete valuation report including original char-killa (4 boundaries certificate), blue print, latest land revenue paid receipt, approved structure design from Municipality (Naksa pass), construction completion certificate (wherever applicable), copy of government rate of land etc.
• Borrower’s declaration on multiple banking

Note: Other documents as per Bank laid down procedures, as applicable

Key Features of NMB Ballooning Housing Loan:

• Ballooning loan option up to 40% of total loan limit
• EMI based repayment for non-ballooning portion

Key Features of NMB Reverse Ballooning:

• Diminishing repayment obligation over years during the loan tenure as per customer preference