Nepal Rastra Bank revises loan guidelines
Summary
Nepal Rastra Bank has eased loan provisions by revising the Working Capital Loan Guidelines, allowing term-based credit for procurement loans and limited rescheduling until mid-July 2026.
Key Points
- Nepal Rastra Bank revised the Working Capital Loan Guidelines in 2022 to ease provisions for procurement working capital loans.
- Loans for procurement working capital will now be term based with repayment periods set by banks' internal policies.
- Existing procurement working capital loans can be rescheduled once until mid-July 2026, based on borrowers' cash flow and financial analysis.
- Loans issued to enterprises displaced by highway expansions can be restructured or rescheduled with at least 10% interest recovery before approval.
