Kathmandu, December 26: Those people seeking personal, housing, or hire purchase loans from any bank or financial institution now have to furnish tax clearance documents and income source.
A recent circular issued by the Nepal Rastra Bank (NRB) to the BFIs came up with such legal provision.
It also says that there should be 50% of debt service to gross income ratio while they float the personal, housing and hire purchase loans.
This means the borrowers aspiring to buy home or car from loans must have to present their certificate of income along with tax clearance certificate to the BFIs.
Similarly, according to the new rule, the installment which they pay to the banks should not be more than 50 percent of the total income of the debtor.
It is said that the central bank came with the new measure to discourage people who take loans only to default later.
However, the bankers have decried the latest move on the part of the central bank stating,” It has only made the process of getting loan more complicated and hassle-some for middle-class families.”
The BFIs have floated Rs 248.4 billion residential personal home loans (up to Rs 15 million each) and Rs 182.94 billion hire purchase loans as of mid-November, according to the central bank.
