Nepal Rastra Bank Increases Loan Limit Against Share Collateral
Summary
Nepal Rastra Bank has increased the loan limit against share collateral from 70% to up to 80% for listed companies, allowing licensed financial institutions to extend additional loans based on company strength.
Key Points
- Nepal Rastra Bank increased loan limits against share collateral from 70% to 80%.
- Licensed banks and financial institutions can provide an additional 10% loan based on listed companies' strength by preparing a product paper.
- The product paper must include details like paid-up capital, listing period, profit and dividend conditions, credit rating, and compliance.
- Re-evaluation of shares post-loan disbursement is not allowed for additional loan considerations.
