Nepal Rastra Bank Eases Working Capital Loan Guidelines for Businesses
Summary
Nepal Rastra Bank has relaxed the guidelines for working capital loans, allowing banks more flexibility in repayment periods and rescheduling to support businesses.
Key Points
- Nepal Rastra Bank has amended the Working Capital Loan Guideline, 2079 to ease borrowing terms for businesses.
- Banks can now determine repayment periods for permanent working capital loans after analyzing business factors, instead of a fixed 3-10 years term.
- Outstanding limit for cash credit loans has been relaxed from 10 percent to 30 percent of the loan limit.
- Loans for businesses displaced due to highway expansions can be rescheduled without downgrading loan status until Ashad end, 2083.
