Kathmandu, 25 February 2025 - One to Watch, in collaboration with the National Banking Institute (NBI), hosted a Masterclass on “Understanding Guarantees and Collateral Requirements for Bank Loans” under the NIIC 2 Fund. 

The NIIC 2 Fund is supported by the Swiss Agency for Development and Cooperation (SDC) and implemented by One to Watch (OTW). 

The session began with the signing of an MoU between Mr. Biswa Giri (OTW) and Mr. Dhan Thapa (NBI), formalizing a partnership to organize future training programs and workshops for SMEs.

Led by Mr. Pushpa Raj Bhandari from NBI, the masterclass covered key topics:

• The importance of collateral in reducing loan default risks and safeguarding public deposits.
• The types of assets accepted as collateral, including land, buildings, vehicles, machinery, stocks, shares, and gold, along with their specific requirements.
• Methods for calculating Fair Market Value (FMV) for land and buildings, blending commercial and government valuations, and determining share values based on 180-day averages or last traded prices.
• Key regulatory frameworks like the Secured Transaction Registry Act and NRB guidelines that businesses must follow.

Participants appreciated the practical insights, especially on how banks determine collateral values and the importance of maintaining good creditworthiness. The Q&A session allowed attendees to ask questions about challenges like valuation differences and pledging promoter shares.

The attendees engaged in networking, discussing potential collaborations, and exploring opportunities within the NIIC 2 Fund over refreshments. The session received overwhelmingly positive feedback, with attendees appreciating the expert-led discussions and practical insights.

One to Watch plans to organize future masterclasses jointly with NBI and other stakeholders to continue empowering SMEs with the knowledge and tools they need to succeed.