Nepal – Notarising the Letter of Guarantee

Nepal

Do you live in Australia but you or someone you know is applying for a bank loan in Nepal? Many of our clients and their families with loans from banks in Nepal approach us to assist with the Letter of Guarantee (and sometimes the Statement of Net Assets).

If signed in Australia, the Letter of Guarantee must be notarised (ie, signed in front of a notary public) or at the Nepalese Embassy.

What is the Letter of Guarantee?

If you have been asked to sign a Letter of Guarantee, it is usually to guarantee the financial obligations of someone who has borrowed money. Usually, this is when that person has borrowed money from a bank and the bank wants to make sure that the loan will be repaid (regardless of whether it is paid by the borrower or the guarantor).

As the guarantor to the loan, you agree that you will pay the money owed by the borrower to the bank (ie, the loan) plus ‘all the interest, expenses, charges etc’.

Signing the Letter of Guarantee in person

You must sign the Letter of Guarantee in person. This means you must come to our office with the Letter of Guarantee and your passport and you must sign it in our presence. It cannot be signed electronically or online/virtually.

We must be able to verify your identity according to your passport and see you sign the Letter of Guarantee. This requirement is fundamental to the concept of ‘witnessing’.

We also ask all clients to sign every page of the Letter of Guarantee. We then notarise it by signing and stamping every page as well as completing the notary certification on the last page. Our solid embossed red seal usually appears on the last page with the notary certification.

Other requirements specified by the bank

Sometimes clients also receive instructions from their bank to sign in the margin of every page (in addition to the bottom of the page) and place their thumbprints (both thumbs) on each page next to their signature. Since not every client is asked to do this, we assume that this is not a formal legal or bank requirement. It seems to be dependent on the specific recipient and what they want to see on the document in terms of formality.

If you are not sure of your requirements, you should seek clarification and clear instructions from your bank before signing the Letter of Guarantee.

Are thumbprints necessary?

You should check with your bank whether thumbprints are necessary for the Letter of Guarantee to be valid and acceptable. Some clients sign with thumbprints and others sign without thumbprints.

For those clients that sign with thumbprints, some clients will place their thumbprints on the opposite side of each signature (ie, left thumbprint to the right of their signature and the right thumbprint to the left of their signature). Some clients even form a ‘heart’ shape with their thumbprints.

Regardless of whether the Letter of Guarantee includes thumbprints or how those thumbprints were placed, we still verify the identity and witness the signature of the person signing.

Is a witness necessary?

The Letter of Guarantee includes a section for a witness. Some clients bring their own witness, but there does not appear to be any requirement for that witness’ identity to be verified or their signature witnessed. In most requests, our clients sign in front of us without a witness. We do not know whether they sign again in front of their witness afterwards or submit the document to the bank without a witness.

Signing the Statement of Net Assets

In addition to the Letter of Guarantee, some banks in Nepal will ask you to sign the Statement of Net Assets. This document includes a list of your assets and their corresponding values to support your ability to guarantee the loan. Some banks have asked our clients to have this document notarised with the Letter of Guarantee.

Notarising the Statement of Net Assets follows the same process of verifying your identity and witnessing your signature. The notary public does not verify the truthfulness of the statement and does not require proof of the listed assets or their valuation. If you are signing the Statement of Net Assets, you are declaring that the assets and their valuation are correct.

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Do you have any questions?

Sending documents from Australia to other countries can be complicated. We make it simple.

If your documents must be stamped with an apostille or authenticated and then legalised, we can help with that too. We've also created a flowchart to explain the process.

Not sure what you need? Contact us or visit our Frequently Asked Questions for more information.

So, what's next?

Visit our Notary Fees page for a free quote for our notary public services. Otherwise, call us on +61 2 9687 8885 to speak with our friendly team about your requirements.

Why choose Phang Legal for your notary public services?

We're a leading provider of notary public services in Sydney. We're known for our experience and expertise in notarising documents for other countries, our low-cost fixed fees and service offering, and our availability to help on short notice.

Our office is conveniently located in Parramatta, the geographic centre of the Sydney metropolitan area. We help clients from across Sydney and beyond with personal, professional and timely notary public services.

Ern Phang, Notary Public
Ern Phang
Notary Public

This website is maintained by Phang Legal, a boutique law firm in Parramatta and a leading provider of quality notary public services to satisfied clients across Sydney.

Ern Phang is a director of Phang Legal and a notary public (since 2005). Ern regularly writes about his experiences as a notary public and the issues faced by his clients in sending documents to other countries.

All information on this website is for general purposes only and correct at the time of publication. Only rely on information and advice that is specific to your situation and current at the time you wish to rely on it.