In response to COVID-19, OTW launched the COVID-19 MSME Fund Nepal in partnership with Nabil Bank, NMB Bank and Laxmi Bank, and support from the Swiss Agency for Development & Cooperation SDC and FMO Development Bank. With the overall goal of helping SMEs retain and create jobs, the fund will support Nepali businesses with the potential to become positive cash flow again by providing them interest and collateral-free loans (bridge financing) to meet their short term working capital needs. In additional to short term financing, the fund provides business advisory/development service to help the businesses improve their managerial and operational capabilities.
Interest/Collateral-Free Loans for SMEs General FAQs
We are looking for businesses with:
We are sector agnostic – open to all. We highly encourage you to apply if you meet the aforementioned qualifications.
No, our partner banks will provide the loan after they do their own due diligence on the applications shortlisted by OTW.
The loan size can range from NPR 1 to 2 million.
The loan is interest/collateral free for a maximum period of 18 months (duration of the Fund).
It is a short-term working capital loan for a period of 12-18 months. Interest/collateral free provision will end in 18 months at most. After this period, you will have to adhere to the standard requirements of the assigned bank to continue the relationship.
The terms and conditions of the loan are determined by the bank that will be providing the loan.
The timeline on the sanctioning of the loans is dependent on the submission of required documents/information by the applicant. Banks are expected to provide a decision on a loan application within a week.
You are receiving phone calls from OTW to make sure all the information you submitted are accurate. We also already screened your application before calling you. That way we can ask you any additional information about your business in the phone call.
OTW will send the shortlisted applications to one or more of the partner banks. Based on their review of your application, you may receive a call from the partner bank where after you may be required to visit their branch for loan processing.
Based on the OTW’s and partner bank’s internal due diligence, applications of a final set of eligible MSMEs will be approved and the loans will be disbursed.
If your profile fits into our overall objective, OTW will forward your application to our partner bank(s). If the bank wishes to consider granting you a loan, the bank will then contact you for their due diligence process.
All fees and charges payable to the bank, wherever applicable, are to be borne by the applicant. OTW does not charge a fee at any point.
One to Watch will review all approved loan recipients to assess the need for business development services. If deemed appropriate, services will be provided to the loan recipient. We expect 4 out of 10 to receive business development support.
We will cater our BDS according to the needs of your business in the including but not limited to the following areas:
No, loan recipients of the COVID Fund who qualify for BDS do not have to pay for the services.