KATHMANDU: Nepal Rastra Bank (NRB) has increased the ceiling for home loans to Rs 30 million, up from the previous limit of Rs 20 million, as part of its monetary policy for the upcoming fiscal year.
Unveiling the new policy on Friday, NRB Governor Dr Biswo Nath Poudel stated that the central bank aims to ease access to housing finance while supporting the broader economy.
In addition to the loan ceiling hike, the loan-to-value (LTV) ratio for home loans has been set at 80 percent, allowing borrowers to secure loans covering a larger portion of their property’s value.
The move is expected to boost demand in the real estate and housing sector, which has faced stagnation due to credit tightening in recent years. By increasing the lending limit, the central bank hopes to stimulate economic activity while maintaining financial discipline.
The revised provision is part of NRB’s efforts to strike a balance between credit growth and economic recovery in the post-pandemic landscape.
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