Kathmandu, August 25—
The Nepal Rastra Bank (NRB) has introduced a special facility enabling real estate and housing development companies to reschedule or restructure their loans. The central bank made this provision by amending its Integrated Directives issued to banks and financial institutions.
Under the new rule, banks can now restructure or reschedule loans once for companies registered and approved by the government that are engaged in land development and building construction projects. However, this facility will be granted only upon the borrower’s request and based on:
- A revised business plan
- An analysis of cash flow
- Collection of at least 10% of the outstanding interest before restructuring
The rescheduling or restructuring must be completed by the end of Ashwin 2082 (October 2025). The restructured loans must remain classified under at least the same category as they were in Chaitra 2081 (March 2025), ensuring there is no relaxation in loan classification. Moreover, any loan loss provisions made prior to restructuring cannot be reversed.
Easier Access to Agricultural and Small-Scale Business Loans
In line with the Monetary Policy 2082, the NRB has also issued a circular allowing banks and financial institutions to self-assess collateral values and provide loans of up to NPR 1 million for:
- Food crops and cash crops
- Livestock and poultry farming
- Fisheries and other agriculture-related businesses
Key provisions include:
- Collateral Assessment: Licensed institutions can evaluate the value of agricultural land, products, and business structures internally, eliminating the need for external appraisers.
- No Collateral Valuation Fees: Borrowers will not be charged any valuation fees for agricultural loans.
- Flexible Repayment Schedule: Loan repayment timelines can now be aligned with crop cycles — allowing farmers to repay loans after harvesting or selling their produce instead of following rigid monthly installments.
- Grace Periods: Banks must provide adequate grace periods for repayment based on the cash flow of the agricultural business.
These policy amendments are expected to support Nepal’s struggling real estate sector while also boosting agricultural lending and improving credit access for small-scale farmers and agri-businesses.