Nepal Rastra Bank (NRB) has updated the Working Capital Loan Guidance, 2079, introducing provisions that allow rescheduling of certain working capital loans and restructuring for businesses displaced by highway expansion projects.
Previously, banks and financial institutions provided loans with tenures of three to ten years for “procurement working capital needs.” Under the amended guideline, such loans must now be periodic, with repayment terms determined according to each bank’s working capital policy.
The central bank has also permitted existing periodic procurement working capital loans to be rescheduled once by the end of Asar 2083. Rescheduling must be based on the borrower’s cash flow and financial statements and carried out only if necessary and justified. NRB clarified that this rescheduling will not be considered loan restructuring for classification and loss provisioning purposes.
Additionally, the Integrated Directive 2082 has been revised to allow banks to restructure or reschedule loans for businesses affected by the expansion of the Mahendra Highway and the Mid-Hill Highway. Loans may be rescheduled or restructured upon a borrower’s request, provided at least 10 percent of the interest due has been collected and the borrower’s cash flow and income have been assessed.
All rescheduling or restructuring must be completed by the end of Asar (mid-July) 2026, with loan classification and provisioning remaining unchanged during this period.
