Nepal Rastra Bank (NRB) has conducted a half-yearly review of the monetary policy for the current fiscal year and decided to review the credit limits on real estate and shares loans
Accordingly, the NRB is going to review the credit limits for the unproductive sector including real estate and import.
The central bank has made this arrangement through the mid-year review of the monetary policy for the current fiscal year.
The review said, “The risk weight of credit loans including trust receipts of banks and financial institutions, personal overdraft loans, real estate loans related to land plotting, personal hire purchase loans and loans of margin nature will be reviewed.”
Similarly, low-interest rates on productive sector loans are being studied.
According to the central bank, among the various types of loans disbursed by banks and financial institutions, a study will be done to differentiate the interest rate of loans disbursed to the productive sector from the interest rate of loans disbursed to other sectors.
NRB has stated that this arrangement will be implemented as a model from one sector from the next quarter.
