Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has issued a revised version of its unified directive, implementing new changes effective from Tuesday (Shrawan 1). The central bank has made notable policy adjustments related to credit limits, housing and real estate loans, interest rate corridor, and loan restructuring in earthquake-affected districts.
Key Highlights of the New Directive: Share-Backed Loans Raised to Rs 250 Million:
The ceiling for margin lending backed by share collateral has been increased to Rs 250 million per individual borrower, up from the previous limit of Rs 150 million. This applies collectively across all banks and financial institutions (BFIs).
Eased Credit for First-Time Homebuyers:
To encourage residential ownership, NRB has allowed banks to provide up to 80% loan-to-value (LTV) ratio for housing loans up to Rs 30 million, specifically for first-time homebuyers. Borrowers must prove they have not previously taken any home loan from any BFI.
However, the property financed under this scheme must not exceed 3,000 square feet, and rental income cannot be used to calculate EMI affordability.
Real Estate and Housing Loan Reforms:
While the existing LTV cap of 50% remains unchanged for individual residential housing loans, licensed real estate developers and government-approved residential housing projects can now access up to 70% financing.
Interest Rate Corridor Revised Downwards: NRB has lowered the policy rates to make borrowing easier:
Bank Rate: Reduced from 6.5% to 6%
Repo Rate: Set at 4.5%
Deposit Collection Rate: Set at 2.75% The relaxation of the corridor is aimed at enhancing liquidity and credit expansion.
Special Loan Restructuring for Earthquake-Hit Districts:
Borrowers in quake-affected areas such as Jajarkot and Rukum can restructure or reschedule their existing loans. A minimum 10% interest rate will apply, and the process must be completed by the end of Ashoj 2082 BS (mid-October 2025 AD).
Deposit Mobilization Rules Adjusted: No limit has been set on the resource mobilization capacity for:
Class A commercial banks
National-level Class B development banks
National-level Class C finance companies
However, district-level Class C finance companies are restricted to mobilizing up to 15 times their core capital.
Clarity on Interim Financial Reports:
All BFIs must publish a summarized interim financial report within 15 days of the end of each quarter in a national daily newspaper. Full details must be uploaded to the institution’s website.
Foreign Employment and Women Loans Reaffirmed:
NRB has reiterated that individuals going abroad for foreign employment can access up to Rs 300,000 without collateral, and women can receive up to Rs 500,000 with or without collateral.
The new directive has been issued under Section 79 of the Nepal Rastra Bank Act, 2058, and mandates all banks and financial institutions to revise their internal policies and procedures accordingly starting today.
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