Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has significantly expanded access to digital lending for micro, small and medium enterprises (SMEs), raising the maximum loan ceiling and simplifying procedures under its revised Electronic Lending Guidelines, 2021.
Under the amended provisions, SMEs can now obtain up to Rs 1 million (10 lakh) in long-term working capital loans through digital channels. The repayment period for such loans will be determined by the respective bank or financial institution according to its internal lending policies.
The central bank’s latest move is expected to accelerate digital financial services, improve access to formal credit for small businesses, and support Nepal’s broader digital economy agenda.
For individual customers with salary, professional income, or business income accounts maintained at banks and financial institutions, the revised guideline allows digital loans of up to Rs 500,000, with a repayment period of up to three years.
Similarly, another category of customers will be eligible for digital loans of up to Rs 200,000, also with a maximum repayment tenure of three years.
For SMEs seeking short-term working capital financing, the central bank has set a maximum digital loan limit of Rs 500,000, repayable within one year.
The revised framework also permits banks and financial institutions to use customers’ electronic transaction histories, payment records, and other business-related data while assessing loan eligibility and creditworthiness. To facilitate such digital credit analysis, banks may collaborate with technology service providers and payment service providers.
However, NRB has clarified that all risks associated with digital lending will remain the responsibility of the respective bank or financial institution, even when third-party service providers are involved in the lending process.
The central bank has further mandated that banks, financial institutions, and service providers enter into formal agreements governing data sharing and customer information. Such agreements must clearly address issues related to customer consent, data confidentiality, authenticity of information, and the use of business-related records.
According to the revised guideline, any arrangement involving the sharing of customer information must be based on the customer’s explicit consent, and details of such agreements must be reported to the concerned department of Nepal Rastra Bank.
The latest reforms are expected to encourage greater use of digital lending platforms, expand financial inclusion, improve credit access for small businesses, and strengthen Nepal’s growing fintech and digital payments ecosystem.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
