Nepal Rastra Bank has raised the individual margin loan limit from NPR 15 crore to NPR 25 crore and increased the ceiling for first home loans from NPR 2 crore to NPR 3 crore. The changes are part of the implementation of the new monetary policy.
Nepal Rastra Bank (NRB) has introduced key changes to lending limits under the new monetary policy, aimed at easing credit access for individuals and potentially boosting the capital and housing markets. On Wednesday, NRB issued a circular to banks and financial institutions, formally increasing the individual margin loan limit from NPR 15 crore to NPR 25 crore. With this revision, a single borrower can now obtain up to NPR 25 crore in margin loans.
In a similar move, the central bank has raised the ceiling on first residential home loans from NPR 2 crore to NPR 3 crore. Additionally, the loan-to-value (LTV) ratio on such loans has been increased from 70 percent to 80 percent, allowing banks to finance a larger share of the home’s value.
For real estate loans, the LTV ratio remains unchanged at 50 percent, while the LTV for other private residential home loans has been increased from 60 percent to 70 percent.
These regulatory changes follow the implementation of Nepal’s new monetary policy and are expected to have a positive impact on the housing and capital markets, by encouraging investment and improving credit availability.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
