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National Bank of Pakistan Civil Line Branch
Introduction
History
NBP is the largest commercial bank in the Pakistan and was establishedunder the National Bank of Pakistan Ordinance on November 8, 1949 inPakistan. It was established in crisis conditions following the deadlockwith India. The original intention was to setup it sometime in 1950. Theplans for its establishment had to be advanced in view of the criticalsituation, which developed especially in the jute trade as a result of Indiasrefusal to accept the exchange rate of Pakistans rupee. It played anotable role in financing the jute trade in collaboration with the Jute Boardso that crisis was eventually overcome. The timely opening of the bankbranches enabled the jute growers in East Pakistan to obtain a fair priceof their products and helped the country in maintaining its foreignexchange earnings from raw jute. Later on, it established its office in WestPakistan to help and finance the cotton crop.
The national bank of Pakistan took over the agency work of the StateBank of Pakistan in 1952 for transacting Government business andmanaging currency chests at places where the State Bank of Pakistandoes not has an office of its own. The National Bank of Pakistan in view ofits relationships with the Government and as agent of the State Bank of
Pakistan holds unique position among commercial banks in Pakistan. Forexample, for years it had a monopoly in Government and Semi-Government deposits. This is both a privilege and a responsibility. On theone hand, the bank is given special support and assistance and on theother, it is also expected to serve as an instrument for the promotion ofnational objectives and policies. It also undertakes Government Treasuryoperations. National Bank of Pakistan maintains its position as Pakistanspremier Bank determined to set higher standards of achievements. It isthe major business partner for the Government of Pakistan with thespecial emphasis on fostering Pakistans economic growth throughaggressive and balanced lending policies, technologically orientedproducts and services offered through its large network of 1406 brancheslocally, 24 branches internationally and representative offices.
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National Bank of Pakistan Civil Line Branch
Main Branch (CIVIL LINE) Faisalabad
Incorporation Date
The Civil Line Branch was incorporated in 1949. It is the main branch ofFaisalabad District. National Bank Of Pakistan has 43 branches inFaisalabad. All braches are located in different areas of the cities to servethe nation. Because it is said that the NBP is the nations Bank
Geographical Location
The main branch of national Bank of Pakistan in Faisalabad is situated onthe Jail Road(Civil Line). It is the Central Area of the city, so thegeographical location of the NBP has made its operations so easy for thepublic.This is the only branch that has been owned by the bank. Also the officeof the chamber of commerce is situated on the 2nd floor of the mainbranch of NBP. So that has also strengthen the relationship among the
industrialist of the city and played a great role in there success. Also theyhave contributed n the progress of the NBP because Faisalabad isconsidered as the city of Textile. The textile is playing a great role in theeconomy of Pakistan.
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National Bank of Pakistan Civil Line Branch
Vision Statement
To be the pre-eminent financial institution in Pakistan and achieve marketrecognition both in the quality and delivery of service as well as the rangeof product offering
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National Bank of Pakistan Civil Line Branch
Mission Statement
To be recognized in the market place by Institutionalizing a merit &
performance culture, Creating a powerful & distinctive brand identity,Achieving top-tier financial performance, and Adopting & living out ourcore values.
Core Values
We aim to be an organization that is founded on
Growth through creation of sustainable relationships with ourcustomers. Prudence to guide our business conduct. A national presence with a history of contribution to ourcommunities.
We shall work to
Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders.
We aim to be people who
Care about relationships. Lead through the strength of our commitment and willingness toexcel. Practice integrity, honesty and hard work. We believe that these aremeasures of true success.
We have confidence that tomorrow we will be
Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to thechanging needs of the internal and external environment
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National Bank of Pakistan Civil Line Branch
Operations AND Functions
The main operations and Functions that are performed by the NBP Are asfollows:
Accepting the Deposits of money from the customer
Borrowing money and arranging finance from other banks Advancing and lending moneyto its clients and customers Financing of projects including technical assistance, projact apprisalthrough long term short term loans Buying selling dealing and discounting of bills of exchange,promisery notesdrafts bill of lading, and other instrumens of securities. Foreign exchanger business Financing of seasonal crops Receiving of bonds scrips valuable for safe custody Generating, Undertaking promoting etc of issueof shares. Bonds Undertaking and executing trusts Making investment in Other Companies
Joing Venture with fireign dealers, agent and companies fpr itsrepresentation abroad Utility Services Providing Hajj Services to intending persons Agent of SBP for collecting
Payment of pension on behalf of provincial and central government Treasury business Gold Finances Through mail transfer, demand drafts, telegraphic transfers,payment orders
Locker services Establishing Letter of Credit for importers
Negotiating the Letter of Credits (Exports) Collection based Export Document Selling Foreign Remittances through SWIFT (Society for Worldwide Inter-bank Financial Telecommunications) Foreign Currency Accounts handling (US $, Pound Sterling,Japanese Yen & Dutch Mark) SBP Export Refinance Scheme
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National Bank of Pakistan Civil Line Branch
Remittances both inward and outward
Departments
Operation
The department that is most commonly used for general banking is called the
operation department. In the civil line branch it is being run effectively under the
supervision of CHIEF OPERATION MANAGER
The following are the some categories according to the type of work done by the
operation officers.
Remittances
The main functions of the remittances are as follows
Demand Draft
If you are looking for a safe, speedy and reliable way to transfer money,you can now purchase NBPs Demand Drafts at very reasonable rates.Any person whether an account holder of the bank or not, can purchase aDemand Draft from a bank branch.It is a bill either on demand or otherwise by one bank on another in favourof third party or by one branch of the same bank or by the head office on
the branch or otherwise.
The issuance of the DDThe amount both in words and figures is written and the applicant has tosign on two places which will be helpful in case DD is to be cancelled.The client has to deposit the cheque (Account holder) or cash at thecounter and will receive the receipt that will be paid to the officer who willissue the DD in favour of the holder and the entry will be recorded in theDD issued register.
Mail Transfer
Move your money safely and quickly using NBP Mail Transfer service.And we also offer the most competitive rates in the market.The money will be transferred to the other branch either locally or notthrough mail.
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National Bank of Pakistan Civil Line Branch
If the customer is the account holder then his account will be debited, ifnot then he will have to make the cash payment at the Cash counter andthe receipt will be presented to the MT issuer officer. The following formswill be used for this purpose1. Branch mil transfer form2. Receiving Branch registered Copy3. Issuing Branch Registered Copy4. Debt Voucher 5. Beneficiarys Advice6. Advice to customer
Pay Order
NBP provides another reason to transfer your money using our facilities.Our pay orders are a secure and easy way to move your money from oneplace to another. And, as usual, our charges for this service areextremely competitive.
It is mostly used locally and its procedure is same as the DD issuedprocedure.
Telegraphic Transfer
It is the most efficient way t transfer the money from one place to anotheron one phone call only. It is an application form provided to the customerin which he has to specify the name of the payee, the place of the transferand the amount.
After filling of the voucher the client will make the payment and get thestamp of Cash paid by the Cash Officer And then Authorized person willmake tests on the receipt. The tests are the secret codes that are not
understandable to any unauthorized person.After making the call the tested messages will be delivered to the otherbranch officer who will complete the transaction.
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Cash Department
The deptartment that Deals with the payment and receipt of the Cash or
we can simply say that it is the deptt. that is involved in the cashmanagement . Being the main branch there are two types of cashinvolved.
Local Cash
The cash that is involved in the same branch for payment of the dues or
for any requirement of the branch
Chest Cash
The payment and receipt of the cash from all other branches of the samecity.
Local Cash
The following books are maintained in the cash department of branch
Receiving Cashier Books
Paying Token Books
Scroll Book Cash balance Book
When cash is received on the counter, it is entered in the scroll book inthe cashier book.
At the close of the day these books are balanced with each other. When
the cheque of negotiable instrument is presented at the counter forpayment, Token is used to the customer. After consulation the token andthe instrument is presented to the cashier for payment. The cashiermakes entry in the paying cashier book and payment is made to thePayee. The Consolidated of the receipt and payment of cash in entered inthe cash balance book and drawn closing balanceClosing Balance = Cash + Receipt _Payments
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National Bank of Pakistan Civil Line Branch
Govt. Receipt And Payment
This department also comes under the operations of the branch. It dealswith the payment and collection of dues on behalf of the local, provincialand federal govt.The payment side involves the payment of all type of pensions and otherfunds that are announced by the govt. or any tax returns by the CBR.The collection of dues includes the collection of Sales Taxes, IncomeTaxes, Property taxes and any other fee that is to be submitted in theaccount of the Central Treasury. The collection of the Challan forms, feesand the payment made to the Punjab Public Service Commission is alsoincluded in this counter.
Collection Of Utility Bills
The counter for the collection of utilitity bills also play a great role in thegeneral banking setup. The NBP collects all type of bills on behalf of theconcerned organizations for a pre agreed fee.
Clearing
The department that is responsible for the clearing of the cheques thatare drawn on the other banks or the cheques that have been drawn on
the NBP.In the past it was a more complicated process, because SBPwas the custodian so it had to make the arrangements for the clearanceof cheques that have been drawn on the others. So a person representinghis or her bank had to go to SBP for the Clearance of these chequeswhich was a time consuming method and it was taking at least 4 to 5 daysfor the clearance.Now the SBP has made the thing so easy for all the banks by making acontract to a privatized insitutionNIFT. Now all the clearing is being donethrough the NIFT against a Fee that is Rs.2.5 for every cheque that hasget cleared.
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Types of Cheques Collected by the Clearing
a)Transfer Cheques
The cheques that are collected and paid by the same branch of the bank
b)Transfer Delivery Cheques
The cheques that are collected and paid by two different branches of abank situated in the same city.
c)Clearing Cheques
When the endorsee (the person who deposit the cheque for collection)and the the person on whom the cheque has been drawn are the accountholders of two different banks then these type of cheques can be getcleared through the NIFT.
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National Bank of Pakistan Civil Line Branch
HUMAN RESOURCE DEPARTMENT
Being the main branch of the Faisalabad the Hr department has to play abig role in the success ph the branch. The HR is considering great
importance now a days and should get also because the personnel arethe main asset of the NBP. Being the main branch the staff is also a keyfactor. The primary objective of the Hr department is to get the jobs doneeffectively, economically and with as little friction as possible. Thedepartment is focusing mainly on the policies that are focused on thepersonnel.
Most talented people are hired through proper recruitment process.Discrimination of any kind is counter productive to performance.The objectives/functions that has to be performed by the personnel are
clearly mentioned in the JOB DESCRIPTION.The code of conduct provides s framework of NBPs values and ethicalstandards. The following principles must be applied for the governing thecode of conduct of the bank employees while on the job. All decisions and actions must be confirmed with all applicable laws,regulations and corporate policies. Business must only be succored for NBP on the basis of the beliefin competitive market system and the appropriatness of earning a profitby providing our customer with efficient services.
Individual must be honest and trust worthy in all actions andrelationships for, and in behalf of the NBP.
Each decision or act must be proper, in terms of both our ownsense of integrity and the scrutiny of others. Ethical conduct should be recognized and valued by all employeesand agents of the bank.Formal appraisal is a year round activity and a formal appraisal report isprepared at least once a year. The appraisal comments are based onachievements against key job objectives. In NBP the good performance of
the employees is always acknowledged by giving them monetaryrewards. Excellence awards, merit increments, gifts, visiting tickets toabrade and promotions.
Transfers are usually made on the promotions from one country toanother or from one branch to another or maybe from one department toanother.
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National Bank of Pakistan Civil Line Branch
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National Bank of Pakistan Civil Line Branch
COMPLIANCE DEPARTMENT
The department that deals with the Audit/Checking and inspection is knownas the Compliance deptt. The department is being run under the supervision
of the COMPLIANE OFFICER.
It is involved in the checking of all types of work that is being conducted inthe branch.The inspection is carried out on daily, weekly and monthly basis dependingupon the nature of the work.Generally it includes the following type of functions;
Checking of all type of registers that are maintained by the officers ofremittances, and that areo Demand Draft issued Registero Telegraphic Transfer issued Registero Main Transfer issued Registero Pay Order issued Registero Register of all type of Advices received against DD, MT, and TTo Demand Draft received Registero Telegraphic Transfer received Registero Main Transfer received Registero
Pay Order received Register
Inspection of the Dak/Mail register issued and received Inspection of all books that are maintained at the clearing Inspection of the Cash Book Inspection of the Scroll Book Inspection of the Cheque Book Issued Register
Inspection of the all the payments made to pensioners Inspection of the all type of Receipts
Inspection of the Cash issued to the branches Inspection of the utility bills collected Inspection of the receipts and the payments of the Govt. Counter Inspection of the all type of Deposits Inspection of the of the all type of loans Inspection of the Corporate Cell
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CREDIT ADMINISTRATION DEPARTMENT
The most important department of the NBP main branch. The credit
department of a bank is the most profit generating department of anybank. The department is being run effective under the supervision of CADOfficer. The department is involved in all the process of Booking the loan,documentation, Risk Analysis, Sanctioning /Approval Documentation,Sanction Advice, Securitization, Disbursement, Monitoring, Collection,Recovery.The financing process starts with
Loan Booking Introduction Funds requirement Nature of Utilization Nature of Business Financial position
Character Security
Documentation (Pre-Sanction)
Information about business Persoanl data Security Valuation Security Documents Encumbrance BLA Report (Bench Legal Advisor)
Loan History (CIB Report) Loan Application Form
Analysis Financial Analysis Sector Analysis Product Analysis Political Factors Industry Analysis
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National Bank of Pakistan Civil Line Branch
SBP Prudential Regulations
SecuritizationThe complete process is made for the security that is being used for
the approval of loan. The securities may be of the following types: Personal Guarantee Personal Guarantee + Hypothecation Pledge Mortgage
Charge/Lien on the Current Asset
Approval Document
Then an approval document is received from the appropriate/competent authority.
Sanction Advice
Then the terms and conditions are advised with the approval document.
Disbursement of Loan
Then the loan is disbursed to the party after the completion of all the above stated
requirements.
Monitoring
The monitoring involves all the steps that will be taken for the maintenance of the
advances of the customers. The officers will determine that either the person is
paying the installments or not. In case of short tern loans the time period will
short and the customer should be in a position to payback the loan.
Collection
This sub head is involved in the collection of all the payments and advance if the
time period is finished.
Recovery
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In case of default by the customer, the recovery process will be on. During
recovery all legal actions will be taken against the customers regarding payment
of the loans.
Foreign Exchange
Foreign Exchange means expression of value of local currency whenexchanged in terms of currencies of other nations. The Foreign ExchangeDepartment of NBP is the most competent department and is contributinga lot in the overall performance of the Branch.
The main operations of the Foreign Exchange department are Imports
Exports
Remittances Foreign Exchage Account handling
IMPORTS
The import deals primarily with the letter of Credit, Contract and theAdvance payment.AnLc is a familiar instrument in setting trade between buyer and sellerlocated in different countries for the purchase and sale of goods. It isusually a guarantee by the bank for the payment of the goods deliveredby the exporter to the importer.
Important documents for the Import are Bill of Exchange Commercial Invoice Transportation Documents e.g Air way bill or bill of lading Insurance documents for the goods Packing List
Pre-shipment inspection certificate Form I
In contract the most popular is CAD (Cash against Documents). That isthe payment will be made at the collection of the documents that wereinvolved in the negotiation process.
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Telegraphic Transfer Mail Transfer Demand Draft
Foreign Exchage Account handlingThe accounts are also handled for thecustomer in foreign currencies.
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National Bank of Pakistan Civil Line Branch
PRODUCTS
NBP Premium Aamdani (Monthly Income Scheme)
Eligibility Criteria:
Minimum deposit of Rs. 50,000 and a maximum deposit of Rs.
5,000,000 for 5 years Free Demand Draft, Pay Order and NBP Online Aasan Banking* Free Cheque Book / NBP Cash Card (ATM + Debit) Profit paid every month as follows
Period** Profit Rates***
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1 year 7.50%2 year 8.50%3 year 9.50%4 year 10.50%
5 year 11.00%Earn up to 11% p.a.Profit rates are expected*Certain conditions applyPremature encashment will result in lower rates of returnExpected rates are for the given year
NBP Premium Saver(PLS Saving Account)
Eligibility Criteria:
Minimum saving balance of Rs. 20,001 and a maximum balance ofRs. 300,000
Free NBP Cash Card (ATM + Debit) Two debit withdrawals allowed in a month and no limit on number ofdeposit transactions
Profit calculated monthly and paid on half yearly basis
Earn up to 7.25% p.a. Profit rates are expectedCertain conditions applyPremature encashment will result in lower rates of returnExpected rates are for the given year
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National Bank of Pakistan Civil Line Branch
NBP Karobar (Another step towards your prosperity)
NBP Rozgar Scheme:
If you are aged between 18 and 40years, you could be eligible for easyfinancing for self employment inthe categories below
Karobar Details:
Government of Pakistan (GOP) support:1) Life and disability insurance paid by GOP with no medicalexamination required.
2) 6% mark-up paid by customer, rest paid by GOP.
* Subject to availability of subsidy/confirmation from GOP.Note: The mark-up rate will be revised on annual basis.
Financing Terms & Conditions:
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Minimum Down Payment:
10% of asset price (5 % for PCO and Tele center)
Mark-up Rate Variable:
1 year KIBOR + 2% (For the first year mark-up will be 12%) The customerwill pay markup @ 6%p.a as long as GOP provides the balance markupto NBP on a monthly basis)
1 to 5 Years (for PCO 2 years) Initial 3 months Rs. 200,000/-
NBP Karobar Utility Store(Under a Franchise with Utility Store Corporation)
Financing will be provided to set-up a Utility Store under franchise of
Utility Store Corporation through
Set up of a Utility Store in an owned/ rented shop A Mobile Utility Store: 4 stroke Petrol/ CNG/ LPG Vehicle(Rickshaw) with attached loader body/ (Thehla type or Store)
Eligibility Criteria
Must be Pakistani national bearing a Computerized NIC Age between 18 to 45 years Must be residing in the same city / district for the last 2 years Must have a franchise from Utility Stores Corporation of Pakistan
Must have a valid rickshaw driving license (for mobile utility store) Availability of 2 references & 1 guarantor (USC shop setup No default or rescheduling history of the applicant
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National Bank of Pakistan Civil Line Branch
References and guarantor must be residing in the same city / districtwhere the applicant is residing
Security
In case of Utility Store shop set ups: Hypothecation charge over the present and future assets in store(except stock)
One guarantor, having minimum net income of Rs. 10,000/-p.m.(subject to NBP verification) or must be property owners Personal guarantee of the applicant 4 cross Cheques
In case of Mobile Utility Stores:
A lien would be marked under hire purchase/hypo agreement on thevehicle
Personal guarantee of the applicant 4 cross Cheques
NBP Karobar Mobile General Store
Financing will be provided to purchase 4 stroke Petrol/CNG/LPG Vehicle(Rickshaw) with attached loader body (Thehla type) to set up MobileGeneral Store without USC Franchise.
Eligibility Criteria:
Must be Pakistani national bearing a Computerized NIC Age between 18 to 45 years
Must be residing in the same city / district for the last 2 years Must have a franchise from Utility Stores Corporation of Pakistan
Must have a valid rickshaw driving license (for mobile utility store) Availability of 2 references & 1 guarantor (USC shop setup No default or rescheduling history of the applicant References and guarantor must be residing in the same city / districtwhere the applicant is residing
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National Bank of Pakistan Civil Line Branch
Security
In case of Utility Store shop set ups:
Hypothecation charge over the present and future assets in store(except stock) One guarantor, having minimum net income of Rs. 10,000/-p.m.(subject to NBP verification) or must be property owners Personal guarantee of the applicant 4 cross Cheques
In case of Mobile Utility Stores:
A lien would be marked under hire purchase/hypo agreement on the
vehicle Personal guarantee of the applicant 4 cross Cheques
NBP Karobar Mobile General Store
Eligibility Criteria:
Must be a Pakistani national bearing Computerized NIC Age between 18 to 45 years Must be residing in the same city/ district for the last 2 years
Availability of 2 references No default or rescheduling history of the applicant References must be residing in the same city / district where theapplicant is residing
Security:
A lien would be marked under hire purchase/hypo agreement on thevehicle Personal guarantee of the applicant Cross Cheques
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National Bank of Pakistan Civil Line Branch
NBP Karobar Transport
Financing will be provided to purchase a 4 stroke Petrol/CNG/LPGVehicle (Rickshaw)
Eligibility Criteria
Must be a Pakistani national bearing Computerized NIC Age between 18 to 45 years Must be residing in the same city / district for the last 2 years
Availability of 2 references having landline telephone numbers No default or rescheduling history of the applicant
References must be residing in the same city / district where theapplicant is residing
Security:
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National Bank of Pakistan Civil Line Branch
A lien would be marked under hire purchase/hypo agreement on thevehicle Personal guarantee of the applicant 4 cross Cheques
Women and Poverty:
Women of today is not the women of yesterday she is moreknowledgeable more confident, and more dynamic. To salute the womenof Pakistan, NBP introduces loan products for the women of Pakistan tobring them out from the hardships of poverty, through the following self-employed schemes of NBP Karobar
NBP Karobar PCO
Finance will be provided to purchase Wireless/ Mobile/Desktop telephoneset(s) with prepaid connection and credit balance(s) to establish a PCOsetup
Eligibility Criteria:
Must be Pakistani national bearing a Computerized NIC
Age between 18 to 45 years Must be residing in the same city/ district for the last 2 years Availability of 2 references & 1 guarantor numbers
No default or rescheduling history of the applicant References must be residing in the same city / district where theapplicant is residing
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Security
Hypothecation charge over the present and future assets of thebusiness
One guarantor, having minimum net income of Rs. 10,000/- p.m.each (Subject to NBP verification) or must be a property owner for singletelephone set minimum income requirement for guarantor is Rs. 5,000/-per month and for multiple sets Rs. 10, 000/- per month Personal guarantee of the applicant 4 cross Cheques
NBP Karobar Tele-centre
Finance will be provided to purchase Wireless/ Mobile/Desktop telephoneset(s) with connection, computer(s) and printer cum fax machine cumphotocopier cum scanner etc to establish a Tele-centre on a rested shopor owned premises
Eligibility Criteria
Must be Pakistani national bearing a Computerized NIC Age between 18 to 45 years Must be residing in the same city/ district for the last 2 years
Availability of 2 references & 1 guarantornumbers
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No default or rescheduling history of the applicant References and guarantor must be residing in the same city / districtwhere the applicant is residing
Security
Hypothecation charge over present and future assets of thebusiness
One guarantor, having minimum net income of Rs. 10,000/- p.m.(Subject to NBP verification) or must be a property owner Personal guarantee of the applicant 4 cross Cheques
Repayment
No payment during grace period Monthly installment comprises of principal, mark-up and insurancepayments The customer, at any point of time, may exercise the right to fullyadjust the account before maturity or to partially pay the loan throughballoon payment without any penalty.
Documents to be submitted with the Loan Application
Application form (available for Rs.5/- from all NBP branches) List of items available in the scheme Three attested Computerized NIC copies of the applicant andguarantors each
Two photographs of applicant and guarantors each (if applicable) Franchise acceptance letter from Utility Stores Corporation (whereapplicable) Estimated cost of advance rent, security deposit and assets, to bepurchased along with quotation (where applicable)
Attested salary slip of guarantor (where applicable) NTN or latest Tax Return if available of guarantor (if a businessperson) Proof of property ownership of the guarantors (where applicable)
Processing, Verification & Registration Charges (if applicable)
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Verification Charges Rs. 500 (non refundable)
Rs. 300 for NBP Karobar PCO (nonrefundable)
Processing Charges % of the loan amount(for loan amount upto Rs.30,000/-)
(non refundable)Rs. 1,000/- (for loan amountabove Rs.30,000/- - non refundable)
Note: All charges submitted with
application are non refundable atany stage.
Document Charges At actual
Vehicle Registration At actual (To be borne by the
borrower)
Insurances Property/ Assets insurance to be
borne by the borrower
Life & Disability insurance to beborne by GOP.
Government of Pakistan (GOP) support:1. Life & Disability insurance paid by GOP requires no medical examination.
2. 6% mark-up to be paid by the customer and rest by GOP
*Subject to availability of subsidy / confirmation from GOPNote: The mark-up rate will be revised on annuallyNote: Applicants for all products must
provide their landline/ WLL telephone numbers or provide the landline/WLL telephone
numbers of their relatives, friends, neighbours etc,. However, telephone numbers must be of
the same city/ district where the applicant is residing.
NBP Saibaan
Under the scheme of NBP Saibaan following types of products to thecustomers. His scheme is launched especially for the people those whowant to have loan for the construction, renovation or purchase of land.
Product Items:
Home Finance Home Construction Balance Transfer Facility (BTF)
Home Renovation Purchase of Land + Construction
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Home Purchase (House or Apartment)
Financing Amount Up to 35 Million Financing Period 3 to 20 Years
Debt to Equity 85:15 (Maximum)
Home Construction
Financing Amount Up to 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum)
Home Renovation
Financing Amount Up to 15 Million
Financing Period 3 to 15 Years Debt to Equity 70:30 (Maximum)
Purchase of Land and for Construction thereon
Financing Amount Up to 15 Million
Financing Period 3 to 15 Years
Debt to Equity 70:30 (Maximum)
Re-Financing (Balance Transfer Facility (BTF))
If you have a Home Finance Facility outstanding with another bank you can have
it transferred to NBP through a hassle-free process.
All home financing facilities below Rs. 15 M Debt to Equity Ratio will be 85:15
& for Rs. 15 M and above Debt to Equity Ratio will be 80:20.
*50% of the loan will be disbursed at the time of land purchase and rest of the
50% for its construction will be disbursed in 4 tranches.
Eligibility
Must be Pakistani Resident (National)
Aged between 21 and 65 years at the time of application/disbursement of
loan.
Salaried Person, Self-employed professionals and businessmen.
Property located in NBP approved localities.
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Service duration: Two years for salaried class Three years for self-
employed/business class.
Charges
Mark Up Rates **
Variable Rate Option: SBP Discount Rate with (+2%) with12 months re-pricing
Processing FeeGovernment Employees:
Rs. 500/- irrespective of financing amount.
For Others :
Financing below Rs. 1 Million Rs. 1000 Financing between Rs. 1 to 4 Million Rs. 3000 Financing above Rs. 4 Million Rs. 6000
Other Charges **
Income Estimation, Legal and valuation fee will be charged as per actual
Prepayment Option Available
Pre-payment (Complete/Partial option available).
Required Documents Two attested passport size photographs Two attested copies of your National Identity Card
Cheque for the processing charges
Property Documents: Any title document available (other documents may be required)
AND
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1) FOR SALARIED PERSONS, WHOSE SALARIES ARE DISBURSEDTHROUGH NBP BRANCH
Employer Undertaking for remittance of salary at relevant NBPbranch for credit to customers account (to be provided at a later stage,format available at relevant branch)
Employee ID Copy attested by NBP Branch (where applicable Attested copies of last three (3) months salary slips Attested copies of last three (3) months bank statements
2) FOR SALARIED PERSONS OF MNCs AND NBP APPROVEDCOMPANIES
Employer Undertaking duly attested by relevant NBP Branch, where
applicable (to be provided at a later stage, format available at relevantbranch) Attested copies of last three (3) months Salary Slips Letter of Verification of Employment on Company Letterheadmentioning the date of joining Attested copies of last three (3) months bank statements
3) FOR OTHER SALARIED PERSONS
Letter of Verification of Employment on Company Letterheadmentioning the date of joining
Attested copies of last three (3) months Salary Slips Attested copies of last twelve (12) months bank statements Attested copies of last three (3) months paid bills for electricity andtelephone OR copies of last (12) twelve months credit card bills (whichever is available)
4) FOR BUSINESS PERSONS
Bank Certificate stating applicant maintaining Business Account andthe date of account opening Attested copy of latest Form 29 in case of Private or Public LimitedCompany Attested copy of Partnership Deed (where applicable)
5) FOR SELF-EMLPLOYED PERSONS
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Attested copy of current professional associationmembership/practicing certificate. Adequate proof of professional engagement like bank certificates Attested copy of Partnership Deed (where applicable)
Any other document may be required on case to case basis by the bank
NBP Advance Salary
Take upto 20 advance salaries(currently for NBP account holders ofgovt. or related organization employees).
In January-2003, National Bank of Pakistan has launched a uniqueproduct, NBP-Advance Salary. Currently this product is for fixed-incomepermanent employees of Federal & Provincial Government, Semi-Government, Autonomous, Semi-autonomous, local bodies and otherGovernment organizations. The product is purely cash flow based andoffers its holder to avail 20 (twenty) net salaries in one go to be repaid inup to 60 (sixty) months. With no collateral, insurance or requirements,
Advance Salary provides rapid disbursement in a short turnaround time.
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Terms and Conditions:
Eligibility Permanent Employees of Govt., Semi-Govt.,Autonomous, Semi Autonomous, Local &
other bodies who are maintaining their Salary
A/Cs at NBP.
Repayment Direct deduction from Salary A/CMaximum Loan
Amount
Rs. 490,000/-
Security Employer will provide undertaking thatborrowers Salary and end of service benefits
will route through his/her Salary A/C
maintained at NBP during the tenure of theloan and his/her end of service benefits are at
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least equal to the amount of Advance Salary
required.
Hypothecation of Consumer durables owned
by the borrower.
Three (3) Undated Cheques
Max. Repayment
Period
5 years (60 months)
Advance in terms of #
of net take home
salaries
Up to 20 net take home salaries
Markup Rate 15 % *
(Based on diminishing balance method)
Processing Fee 1% of Loan AmountVerification Charges Rs 500/-
Life Insurance No Insurance of any kind.
Documentation
Charges
at actual
Contact Your Salary disbursing NBP Branch.
Remaining Service Age At the time of approval and disbursement the
applicants remaining service age should be 6months after maturity of the loan
Debt Burden 50%
Minimum net take
home salary
no minimum take home requirement
NBP Cash Card
To identify a merchant outlet that welcomes your card, just look for theNBP or Orix Logo. To make a payment give your NBP Cash Card to themerchant. The merchant will swipe your card on the POS (Point Of Sale)
machine and the purchase amount will be entered. Enter your digital ATMPin for verification (this is the same as your cash withdrawal pin). AfterApproval a transaction slip will be provided. Collect your card and slip andconfirm you transaction amount. Your purchase transaction is nowcomplete and the transaction amount has been debited to your NBPaccount. Please retain your transaction for further reference.
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NBP Cash Card Safety Tips
Welcome to our relationship enriched with a wide range of remarkable e-banking service. For your safety and convenience we would recommendsome precautions while using NBP CASH CARD at ATMs and merchantoutlets.
Immediately after receiving the NBP Cash Card, change your PINCode at the nearest NBP ATM. Never share your Personal Identification Number (PIN) or given itout over telephone. Never write your PIN Code on your card. Never keep your card and PIN at the same place. As you approach an ATM, beware of your surroundings, if you
notice anything unusual, visit the ATM later. Immediately report a lost of stolen card to your NBP branch. Stand close to the ATM machine while entering your PIN and do notallow anyone to watch. Ensure that the merchant has entered the correct amount oftransaction before you enter your PIN code. Maintain your POS receipt as a record and ensure that he cardreturned to you by the cashier/attendant is yours. Protect your card from direct sunlight and magnetic fields. Do not bend your card. Carefully dispose off your old card when your are issued a new one.
NBP Investor Advantage
NBP launches Margin Financing for Retail Investors with brandname of NBP Investor Advantage:
A margin financing facility developed for retail investors in line with
Governments efforts to promote Pakistani capital markets and willreplace the Badla (COT) system with a stable financing system in linewith international financial markets. Besides offering a comfortableenvironment to the retail stock investors, a financing facility will also beavailable. Willing investors can avail NBP financing at very easy termsrequiring minimum documentation and least turn around time. The NBPfinancing also does not require any security from the customer except for
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the customers equity. Importantly, the customers equity will also befreely available for investment. Customer has to fulfill all NBP and SBPregulatory requirements.
To obtain NBP Investor Advantage facility
Eligible if:
A Pakistani Nationals with valid computerized national ID Card
Over 21 years of age Have an account with NBP designated branch Willing to invest equity in the form of cash orNBP approved shares No default with any financial institution
For utilizing the NBP Investor Advantage, please follow the followingsimple steps:
1. Obtain Facility Application form from the NBP MarginFinancing Desk at NBP Main Branch, Karachi, I.I. Chundrigar Road,Karachi (other branches are being added through out Pakistan)2. Fill in the application form and submit it to the branch at theMargin Financing Desk3. On application approval, customer deposits equity as Cash inthe customers margin financing account at the bank. Alternately NBP
approved Shares can also be deposited in the NBP CDC account4. Customer would then be eligible for trading through tradingcenter of the NBP Subsidiary namely Taurus Securities Limited adjacentto the NBP Main Branch at I.I. Chundrigar Road, Karachi5. Customers own equity and financing amount will both theavailable for trading
List of Shares Eligible for NBP Investor Advantage
S.No. No Name of Shares/ Scrips
1 D.G Khan Cement Company Limited2 Engro Chemical Pakistan3 Fauji Fertilizer Co.4 Hub Power Company Limited5 PICIC Growth Fund6 Kat Addu Power Company
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7 Nishat Mills Limited8 Oil & Gas Development Co. Ltd9 Pakistan OILFIELD LTD.10 Pakistan Petroleum Limited
11 Pakistan State Oil12 PTCL13 Sui Northern Gas Pipe Lines Limited14 Sui Southern Gas Company Limited
NBP Cash n Gold Card
With NBP's Cash n Gold, you can meet your need for ready cash againstyour idle gold jewelry.
Rate of mark-up 12% p.a.
Facility of Rs. 7,000 against each 10 gms of net contents of gold No maximum limits of cash Repayment after one year Roll over facility Only gold ornaments acceptable Weight and quality of gold to be determined by NBP's appointedscruffs No penalty for early repayment
NBP Kisan Taqat- General Information
If you are a progressive milk supplier of Nestle Milk PackBy financial aid of National Bank of Pakistan, you can increase theproduction of milk efficiently.
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Benefits of National Bank of Pakistans Loan:
Branches, closest to youEasy and shortened documented procedureRelaxation from paying installmentsGuidance and help of experienced peopleGovernment bank with more than 50 years of age
NBP Kisan Dost
National bank of Pakistan has started for Farmers an Agriculture loansystem names Kisan Dost whose basic objective is this that a farmercan acquire a loan with full trust and without any bribery and referenceaccording to his requirements. He should have access to approved loanwhen he needs it and whenever he wants it he may withdraw money infuture from his account as per his requirement, approved on revolving
basis during three years without any paper documents. So, now everyfarmer can very easily increase his production with easy access to loan.
Features:
Lowest mark up on loans, i.e. 12% per annum Fast and easy procedure for loan approvals Availability of loans on time and when needed, on the door of farmer
On every step, guidance of farmers through agriculture experts For the acquirement of loans, a wide range of agriculture loans(schemes) Facility of agriculture loan at agricultural pass book, jewelry andpaper securities Providence of loan up to 0.1 million on personal guarantee to non-owner farmers
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Facility of revolving basis of loans for three years for which newdocuments requirement is not required
SWOT Analysis
A SWOT analysis is an effective tool, which can be used to examine theissue that will directly affect the success of alternative deliverymechanism. The emerging banking environment is becoming morecompetitive with the advancement of new technology. The banks arestriving to provide their customers with prominent and efficient services at
lower cost in order to get the competitive advantage upon other banks.During the internship program a SWOT analysis was also conductedwhich is as follow:
Strengths
1. Deposit security that is guaranteed by Government of Pakistan2. Largest contribution toward Government & semi-Governmentrequirements
3. Agent to the SBP for handling Treasury/ Currency Chest Functions4. Collaboration with Federal/ Provincial Government organizations forreceipts of taxes & other revenues5. Largest network of domestic & overseas branches6. More secured jobs of employees as compared to other commercialbanks (Job Security)
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7. Sale & Purchase of prize bonds, NIT units, National Defense SavingCertificates (NDSCs) and other government securities.8. Heavy project financing, Agriculture, Industrial as well as smallloans9. Key role in countrys economic development10. Easy and shortened documented procedure11. Guidance and help of experienced people
Weaknesses
Under utilization of the new technology equipment & procedures ofbanking
More formal organizational setup
Bureaucratic style prevails in the National Bank of Pakistan Lack of highly skilled, trained and professional personnel Fixed deposit rates not compatible with the competitors Foreign currency accounts governing rules more restricted & notcustomer oriented Bank staff not highly cooperative among themselves as well as withthe customers Overall employees poor attitude towards work
Opportunities
The ability to obtain a larger customer base Global expansion. This is an enormous market, which will be a greatopportunity in the future The ability to take advantage of the growing popularity of internetbanking Providing Information Technology loans to the students andeducational institutions in order to foster the Computer and Managementstudies Providing the personalized services to the customers Offering high deposit rates and cutting down the high lending rates Financing the educational institutions and general public welfareprojects in order to create a good image in general public
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Threats
Continual changing technology Uncertainty of the banking industry
Competition from lower price operations Possible failure of product due to non-acceptance of customer General competitiveness of the banking industry
Deposit Policies of NBP
As well as deposit is concerned the deposits are the life blood of the bankbecause the borrowed capital is much greater than their own capital. Thedifference between the borrowed money interest and the lending rate ofinterest will be the profit margin of the bank because the lending rate is
higher than the borrowing rate. Following are the major deposits of thebank:
Current Account
Current accounts are opened for meeting the current needs of thecustomer. On such account there is no markup paid to theaccountholders. These are also called non-interest bearing accounts.Minimum balance requirement is Rs. 5,000 if balance of the account willbe less than 5,000 than Rs. 50 to be deducted each month. Pension,
Government employees, students, widow are exempted from thisrestriction. No Zakat will be deducted from the current Account holder.2% tax will be deducted if the customer withdraw more than 25000 in aday.
Requirements for the Current account
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CNIC of the customer CNIC of the next of Kin CNIC of the Introducer
Two photographs for the illiterate person.
Specimen of the signatures of the educated person The introducer must be an existing current account holder.
PLS Saving Account
The customers in this account deposit a lot of amount. On such amountthere is markup paid to account holders. Minimum balance requirement isRs. 5,000 if balance of the account will be less than 5,000 than Rs. 50 tobe deducted each month. Pension, Government employees, students,widow are exempted from this restriction. Zakat will be deducted from theAccount holder.2% tax will be deducted if the customer withdraw more than 25000 in aday.
Requirements for the Saving account
CNIC of the customer CNIC of the next of Kin CNIC of the Introducer
Two photographs for the illiterate person. Specimen of the signatures of the educated person The introducer must be an existing account holder.
Mark Up Rate is 1.2% per annum for 100 Rupees.
PLS Term Deposit
These type of deposits are offered for a term or a specific time period.The minimum deposit should be for the 7 days at least. If the customerwill want to withdraw from the term deposit then the saving rate will beapplied on the amount.
Requirements
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CNIC of the customer CNIC of the next of Kin CNIC of the Introducer
Two photographs for the illiterate person.
Specimen of the signatures of the educated person The introducer must be an existing account holder.
Following Rates will be applicable depending upon the time periodinvolved. For 7 days 1.2% per annum For 30 days 1.5% per annum For 3 Months 1.27% per annum
For 6 Months 1.8% per annum
For 1 Years 2% per annum For 2 Years 2.3% per annum For 3 Years 2.7% per annum For 4 Years 3% per annum For 5 Years and above 3.25% per annum
PLS Saver
The newly introduced scheme by the NBP is PLS Saver which is effectivefrom the 1.1.2007.The customers in this account deposit a lot of amount. On such amountthere is markup paid to account holders. Minimum balance requirement isRs. 20,000 and the maximum limit is 300,000. if balance of the accountwill be less than 5,000 than Rs. 50 to be deducted each month. Pension,Government employees, students, widow are exempted from thisrestriction. Zakat will be deducted from the Account holder.2% tax will bededucted if the customer withdraw more than 25000 in a day.
Requirements for the Saver account
CNIC of the customer CNIC of the next of Kin CNIC of the Introducer Two photographs for the illiterate person.
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Specimen of the signatures of the educated person The introducer must be an existing account holder.
The mark up rate is 7.25% annually.
NBP Premium Aamdani
Under this deposit policy now the customer can earn monthly basisreturns on his amount. Minimum deposit of Rs. 50,000 and a maximumdeposit of Rs. 5,000,000 for 5 years. Free Demand Draft, Pay Order andNBP Online Aasan Banking. Free Cheque Book / NBP Cash Card (ATM +
Debit). Profit paid every month as follows
Period Profit Rates
1 year 7.50%
2 year 8.50%
3 year 9.50%
4 year 10.50%
5 year 11.00%
Profit rates are expectedCertain conditions apply
Premature encashment will result in lower rates of returnExpected rates are for the given year
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Lending Policies of NBP
Basically lending policies are governed by SBP lending policies, however,NBP has some discountary powers in respect of lending policies. The
advances made by the NBP has increased so much and are involved increating a great amount of return for the bank. Deposits and theAdvances are the two important functions of any bank. NBP takesdeposits from the customers and lend them to the others for earning aprofit. The difference between the deposit rate and the lending rate will bethe benefit of the bank. Civil line branch of NBP is playing the mostimportant role in this category because it has a separate department todeal with the peoples those who want to have money. Civil line branch isdealing with the Corporate sector as well.
Working Capital and Short Term Loans:
NBP specializes in providing Project Finance Export Refinance toexporters Pre-shipment and Post-shipment financing to exporters Running finance Cash Finance Small Finance Discounting & Bills
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Purchased Export Bills Purchased / Pre-shipment / Post ShipmentAgricultural Production Loans
Medium term loans and Capital Expenditure Financing:
NBP provides financing for its clients capital expenditure and other long-term investment needs. By sharing the risk associated with such long-term investments, NBP expedites clients attempt to upgrade and expandtheir operation thereby making possible the fulfillment of our clientsvision. This type of long term financing proves the banks belief in itsclient's capabilities, and its commitment to the country.
Loan Structuring and Syndication:
National Banks leadership in loan syndicating stems from ability to forgestrong relationships not only with borrowers but also with bank investors.Because we understand our syndicate partners asset criteria, we helpborrowers meet substantial financing needs by enabling them to reach thebanks most interested in lending to their particular industry, geographiclocation and structure through syndicated debt offerings. Our syndicationcapabilities are complemented by our own capital strength and byindustry teams, who bring specialized knowledge to the structure of atransaction.
Cash Management Services:
With National Banks Cash Management Services (in process of being setup), the customers sales collection will be channeled through vastnetwork of NBP branched spread across the country. This will enable thecustomer to manage their companys total financial position right fromyour desktop computer. They will also be able to take advantage of ouroutstanding range of payment, ejection, liquidity and investment services.In fact, with NBP, youll be provided everything, which takes to manageyour cash flow more accurately.
Generally Leading Policies Include:
Clean Credit ReportCompliance with maximum exposure by the bankCompliance with maximum exposure that can be allowed to a single partyFunded = 4 times of equity of the firm
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Non-Funded = 10 times of equity of the firm
Lending Policies made by the NBP have categorized the loans in thefollowing types according to the requirements of the customers.
TYPES OF ADVANCES1. Security Vice
Clean AdvancesIn these types of advances only the personal
guarantee of the borrower is involved. The best example is the CreditCard.
Secured LoansThe loans the sectioned of those are associated with
the security. The securities may be of the following types: Personal Guarantee Personal Guarantee + Hypothecation
Pledge Mortgage
Charge/Lien on the Current Asset
2. Period ViceThe loans that are designed according to the time periods needs.
Short Term Loans (For 1 year only) Long Term Loans (For 5 years)
3. Utilization Vice The advances that are typically designed according to theutilization requirements of the loans. Working Capital Requirement
Project Finance
4. Customer ViceAccording to the customer
Consumer finance SME lending Corporate Financing
5. Sector Vice
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The advances that are according to the sectors, such as Agriculture Textile
Chemical sector
All the types of advances comes under the following Credit Heads
1. Small Finance
2. Cash Finance
3. Running Finance
4. Demand finance
5. Agriculture Finance
6. Corporate Loans
Small Finance
As the name indicates, this head involves small amount that will
be financed by the bank. The loan is for the business people only. The loan will
be issued against any tangible security of the businessman. These small loans are
sanctioned for short period of times i.e for 1 year only. After one year the
customer will have to pay back the amount or will renew his loan.
The loan amount will be 60% of the amount of the property that is being pledged.
The mark-up Rate Is fixed 12% annually.
Under Small Finance following types are included.
Gold Finance
Commercial finance
Industrial Finance
Gold Finance
If the customer has the gold then he can use it for the generation of
the money. 60% of the gold amount will be financed by the NBP after evaluation
from the jewelers those are under that contract of NBP. It is a short tern loan and
must be paid or renewed after 1 year.
Following documents will be required
CNIC
Complete information of Business
CIB Report
Application Form
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Security Evaluation from authorized Jewelers
BLA Report
IB 6A (Gold Agreement)
IB12 (Promissory Note)
IB 26 (Pledge of security)Any other document as per the requirement of the NBP.
Commercial & Industrial Finance
For the small businessmen those are doing business at commercial level mainly
for sole proprietorship. The upper limit that will be sanctioned under this finance
is Rs. 250,000. For small industrialists this facility is also available. In this case
the upper limit will be 500,000.
Mark-up will be 12% and the loan is for 1 year.
Following documents will be required
CNIC
Complete information of Business
CIB Report
Application Form
Security Evaluation from authorized Jewelers
BLA Report
IB 6R (Finance Agreement duly signed by the Bank and customer)
IB12 (Promissory Note)
IB 26 (Pledge of security)
IB 25 (Hypothecation of stock)
HOX7 (Mark-up Rate Agreement)
Any other document as per the requirement of the NBP.
Running Finance
This financing facility is also for short period of times, i.e for 1 year only. After 1
year it must be renewed or cleared. It is mostly issued against some type of liquid
assets, such as Defense Saving Certificates (DSC) or term deposits. These loans
are typically taken for the working capital requirements. While sanctioning the
loan the bank will create lien on the DSC or term deposit from the Issuing bank.
There is no limit for the loan.
75% of the DSC or Term Deposit will be given to the customer.
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Mark-up Rate will be fixed 12% per annum.
Following documents will be required
CNIC
Complete information of Business CIB Report
Application Form
Security Evaluation from authorized Jewelers
BLA Report
IB 6R (Finance Agreement duly signed by the Bank and customer)
IB12 (Promissory Note)
IB 26 (Pledge of security)
IB 28 & 31 (For liquid assets)
HOX7 (Mark-up Rate Agreement)Any other document as per the requirement of the NBP.
Demand Finance
Demand finance is provided to the customer on demand by him. In NBP it is
mostly issued to the Staff. The others can also take this facility. There is no upper
limit for the loan amount. The loan is issued against some type of property that
will be pledged by the bank. In this type of loan the borowwer will take the
whole amount at once.
The loan can be sanctioned for 1 year or for 5 years.
Markup for the Staff is 4%.
Markup for the others is Kiber +2.3%
Following documents will be required for Staff
CNIC
Application Form
IB 6C (Finance Agreement with staff)
IB12 (Promissory Note)
IB 25 (Hypothecation)
HOX7 (Mark-up Rate Agreement)
Any other document as per the requirement of the NBP.
Following documents will be required for others
CNIC
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Complete information of Business
CIB Report
Application Form
Security Evaluation from authorized Jewelers
BLA Report IB 6R (Finance Agreement duly signed by the Bank and customer)
IB12 (Promissory Note)
IB 25(Hypothecation)
HOX7 (Mark-up Rate Agreement)
Any other document as per the requirement of the NBP.
Cash Finance
The limit of this type of cash is above 500,000. It is both for long run and short
run.
This type of loan is mostly sectioned to big industrials and businessmen.
The main advantage of this type of advance is that the customer can have loan up
to his requirement within the limit that has been sectioned to him. The mark up
will be charged on the amount that has been used by the customer not on the
whole, which is the case in Demand Finance.
Mark Up Rate is KIBER+2.3% Per annum.
Documents Requirement
CIB Report
Application Form
Security Evaluation from authorized Jewelers
BLA Report
IB 6R (Finance Agreement duly signed by the Bank and customer)
IB12 (Promissory Note)
IB 26 (Pledge of security)
HOX7 (Mark-up Rate Agreement)
IB 25 (Hypothecation of Stock)
Any other document as per the requirement of the NBP.
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Agriculture Finance
NBP provides Agricultural Finance to solidify faith, commitment and prideof farmers who produce some of the best agricultural products in theWorld.
Agricultural Finance Services:
I Feed the World program, a new product, is introduced by NBP withthe aim to help farmers maximize the per acre production with minimum ofrequired input. Select farms will be made role models for other farms andfarmers to follow, thus helping farmers across Pakistan to increaseproduction.
Agricultural Credit:
The agricultural financing strategy of NBP is aimed at three mainobjectives:-
Providing reliable infrastructure for agricultural customers Help farmers utilize funds efficiently to further develop and achievebetter production Provide farmers an integrated package of credit with supplies ofessential inputs, technical knowledge, and supervision of farming.
Agricultural Credit (Medium Term):
Production and development Watercourse improvement Wells Farm power Development loans for tea plantation
Fencing Solar energy Equipment for sprinklers
Farm Credit:
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NBP also provides the following subsidized with ranges of 3 months to 1year on a renewal basis.
Operating loans Land improvement loans Equipment loans for purchase of tractors, farm implements or anyother equipment Livestock loans for the purchase, care, and feeding of livestock
Production Loans:
Production loans are meant for basic inputs of the farm and are shortterm in nature. Seeds, fertilizers, sprayers, etc are all covered under this
scheme.
The mark up Rate is Fixed 12% annually.