KATHMANDU:  Nepal Rastra Bank (NRB) has issued a revised Unified Directive 2024 targeting Class ‘A’, ‘B’, and ‘C’ banks and financial institutions (BFIs) to align with the new monetary policy.

The directive introduces several key changes covering loan restructuring, margin lending, real estate and housing loans, financial reporting, and interest rate rules.

BFIs can now restructure or reschedule loans—including housing and personal loans—for borrowers in earthquake-affected areas like Jajarkot and Rukum, provided at least 10% of the due interest is collected. The restructuring must be completed by the end of Ashoj 2082 and the loan classification remains unchanged.

The directive sets a margin lending cap of Rs 250 million per borrower across all licensed institutions. This cap does not apply to institutional investors primarily involved in capital markets. Breaching this limit will require BFIs to make 100% loan loss provisioning.

Loan-to-value (LTV) ratios have been updated. Real estate loans must not exceed 50% of the property’s fair market value. For government-approved residential projects, LTV can go up to 70%.

First-time homebuyers can get up to Rs 30 million in loans with an LTV of 80%, provided conditions are met—such as property size not exceeding 3,000 square feet, no prior housing loans, and no rental income used for repayment.

Additional revisions include new rules on financial reporting, foreign employment loans, base interest rates, and capital adequacy requirements.