Banks and financial institutions will now be able to provide loans to customers through a digital system. Nepal Rastra Bank (NRB) has implemented the arrangement by issuing guidelines on digital lending on Friday.
As per the guidelines issued by the central bank, banks and financial institutions will be able to give loans through the digital system up to a maximum of Rs. 500,000. Only customers with salary, professional, or business accounts in banks and financial institutions will get the service.
In order to provide the loan, banks and financial institutions will have to create a separate website (portal) and obtain the required documents including application through the same medium. Concerning banks and financial institutions will also have to provide digital information to the customer whether the loan has been approved or not.
The loan taken through digital medium should be repaid within a maximum of three years. The loan can be repaid in one lump sum or in installments.
