Kathmandu. Nepal Rastra Bank (NRB) has extended the time period for repayment of current capital loans by one year for the relief of businessmen who have taken loans beyond the limit.
Nepal Rastra Bank (NRB) on Monday amended some provisions of the unified directive and extended the deadline set for repayment of loans in five installments by July 2082 till June 2083.
The entrepreneurs who have availed the current capital loan facility beyond the prescribed limit had requested the Governor of the Rastra Bank to extend the deadline till mid-June.
With the new directive of the Rastra Bank, banks and financial institutions will now be able to reschedule the outstanding loan amount of the loan disbursed under the current capital loan by maintaining the same period installment and recovering it till June 2084.
Due to the extension of this deadline, the pressure on banks to provision loans has eased a bit. Had the Rastra Bank not amended the guidelines, banks and financial institutions would have been forced to provide 100 per cent loss for the remaining amount to be recovered. Due to the loss arrangement, the bad loans of the bank would increase and the profit would also be negatively affected.
Nepal Rastra Bank (NRB) has also extended the provision related to variance by one year.
The deadline for agricultural, small and poor loan investment towards directed investment has also been extended. The agriculture loan has to be increased to 12 percent by 2082, but now the agricultural loan will be increased by mid-July 2083.
Nepal Rastra Bank (NRB) has also extended the time to invest in domestic and small enterprises, energy and tourism sectors. The limit has been fixed till Mid-July 2085.
Commercial banks such as Standard Chartered were also facing regulatory action by the Rastra Bank for not meeting the ratio of directed investment.
