Monetary Policy Update: Higher Loan Limits Offer Major Credit Relief for Housing, Shares, and Digital Lending
Summary
Nepal Rastra Bank released its 25th monetary policy increasing loan limits for housing, shares, and microfinance to support economic growth and price stability in FY 2083/84.
Key Points
- Nepal Rastra Bank unveiled its 25th monetary policy for FY 2083/84 aiming to support 7.0% economic growth and price stability.
- Loan limits for private residential housing increased from Rs. 20 million to Rs. 30 million with an 80% LTV for first homes.
- Personal overdraft limit doubled from Rs. 5 million to Rs. 10 million to boost consumption.
- Single obligor loan limit on share collateral increased from Rs. 150 million to Rs. 250 million to encourage stock market investment.
- Microfinance collateral loans increased from Rs. 0.70 million to Rs. 1.5 million, benefiting rural borrowers.
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