Bank Calls for Sealed Bids to Auction Collateral of Loan-Defaulting Borrowers

Shangrila development bank has invited sealed bids for the auction and sale of movable and immovable properties pledged as collateral by borrowers who have failed to repay their outstanding loans.

The seven-day notice was published on October 4, 2026 (Ashoj 18, 2083) in Nepal Samacharpatra National Daily. The bank has asked the concerned borrowers, collateral owners and guarantors to settle the outstanding principal, interest, penalties and other applicable charges within the stipulated period.

According to the notice, repeated written and verbal reminders, as well as previous public notices, have failed to result in repayment of the loans. The bank has therefore initiated the process of selling the pledged assets through sealed bids in accordance with the prevailing laws and regulations governing banks and financial institutions.

Interested bidders must submit their sealed bids within office hours by Ashoj 24, 2083 (October 10, 2026). The bids will be opened at 11:00 AM on the following working day at the concerned branch office. Bidders or their authorized representatives may attend the opening, although their absence will not prevent the bids from being opened.

The bank has stated that the collateral will be sold on an “as is, where is” basis and transferred for the purpose of ownership transfer following the applicable legal procedures.

The notice further warns that if the borrowers fail to clear their liabilities within the given period, their names may be placed on the Credit Information Centre’s blacklist in accordance with Nepal Rastra Bank directives, without requiring a separate notice.

If the properties cannot be sold through the auction process, the bank may adopt other lawful methods to dispose of the assets or take them over itself. If the proceeds from the collateral are insufficient to recover the bank’s total outstanding dues, the bank may recover the remaining amount from the borrower’s other movable or immovable assets as permitted by law.