Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has increased the maximum limit of share-backed loans provided by banks and financial institutions to individuals. The announcement was made by Governor Dr. Bishwanath Paudel while unveiling the monetary policy for the fiscal year 2082/83 (2025/26) on Friday.
Previously, individuals were allowed to borrow up to Rs 150 million (15 crore) against shares as collateral. The new policy has increased this ceiling to Rs 250 million (25 crore), signaling a more liberal approach aimed at boosting investment and liquidity in the stock market.
Banks and financial institutions currently offer loans against shares up to 70% of the lower value between the average price of the last 180 days and the latest market price. As per data available till the end of Jestha (mid-June), share mortgage loans worth Rs 128 billion have been disbursed in the market.
This move is expected to inject additional liquidity into the capital market, attract individual investors, and support stock market growth, while also balancing risk through the valuation method maintained by NRB.
The revised limit is part of NRB’s broader effort in the new monetary policy to enhance credit flow, encourage market activities, and strengthen financial access through a more flexible regulatory framework.
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