Collateral (Property) Acceptance Criteria for the Valuation of the property by the banks In Nepal.
There are two criteria to be checked for: Legal Criteria of the property
Asset without legal clarity of ownership are not accepted.
Asset owned by minor are not allowed.
Asset which is being notified for acquisition or on the process of acquisition by the Government are not eligible for the valuation
Asset on dispute or in litigation are not accepted by the banks.
In case of land and building having tenancy rights (Mohi) /Guthi land, these property are not eligible for the valuation.
Technical Criterial of the property
Asset unsuitable for residential or commercial purposes are not accepted by the banks.
Asset being used for the welfare of the common people like Temple and Park are not accepted.
Asset without free, undisputed & proper road access are not accepted.
Asset situated near big rivers, near country border are not valued/not accepted.
Asset within the construction barred zone parameter notified by Road Department or Rural Municipality cannot be accepted for the valuation.
Asset within the World Heritage, Conservation and Protected Wildlife areas.
Asset near to the 33kV or more electric High-Tension Line are not valued.
The Property should be accessible by motorable road as per prevailing applicable government laws/norms. The motorable road should be evident at the site as well as on the topographical survey map/cadastral map.
Width of access road of the land to be mortgaged should not be less than 6 meters (3 meters from center line of access road in each side). If width of the access road of the property to be mortgaged is less than 6 meters appropriate Right of Way (ROW) should be deducted while valuating such land.
Length and width of land at the narrowest part should not be less than 6 meters for the land to be considered as collateral.
Land area of the property to be Consider for Valuation must not be less than 80 sq. meters (i.e. 0-2-2-0 Ropani-Anna-Paisa-Dam) or 4.5 Dhur after deducting required ROW(Right of Way).
Important Note: The above-mentioned eligibility criteria are checked by all the banks and valuators (Engineers) so, if your property/land passes above eligibility criteria, Congratulations! your property is eligible for the mortgage in any financial institutions (Banks) of Nepal.
However, prior approval is needed from the bank for the valuation of property in case of any deviation needed in above mentioned criteria.
If You need any further consultation Please contact us at : + 977 9869450512 , Email:info@beever.com.np