The NID Bank’s commonly used modality is the project loan or lending for financing to various projects. The NID Bank typically supports long-term lending with a clear scope; tangible outputs; after an estimate of the cost of laying down the infrastructure, cost of goods, works, and services needed to complete the project. The NID Bank uses its own procedures in preparing project estimates and administering the project loans/ long term/ short term loans.
The project financing is referred to funding of long-term projects in the domain of public infrastructure or services, industrial projects through financial structures comprising of debt and equity.
The NID Bank’s distinguishing feature is its “project” based lending principles as part of its primary objective. Projects financed by the Bank are carefully selected and prepared, thoroughly appraised, closely supervised, and systematically evaluated, both prior to taking up the project and at periodic intervals during its continuity.
Prior to financing a project, the Bank is required to conduct an independent assessment of the fund requirements, project appraisal through market surveys and assessment, conduct a feasibility study based on market inputs as also to ensure the complete financial tie ups prior to execution of the project.
The Bank extends credit to credit worthy borrowers (different organizations, Govt., individuals) and to projects which have received a thorough appraisal and are found to be financially and economically viable and socially desirable in terms of environment protection, employment generating capacity and other social benefit that may be included in the framework of development and regulatory act(s) of the Government as also to promote Govt. priorities.
