Banking Khabar/ Nepal Rastra Bank has removed the Rs 250 million limit on share-backed loans for individuals. The central bank announced the decision through a circular issued today to banks and financial institutions, revoking the previous provision that had set the ceiling.
Previously, a maximum limit of Rs 250 million was imposed on margin-type loans obtained through share pledges from one or more licensed banks and financial institutions. The central bank has now completely lifted this restriction.
With this new decision, individuals can now obtain share-backed loans from banks and financial institutions as needed, without any ceiling. The Capital Market Reform Task Force formed by the Ministry of Finance had earlier recommended removing this cap. Acting on that recommendation, Nepal Rastra Bank has eliminated the provision.
This move is expected to enhance liquidity in the capital market and make access to financing easier for investors.
