KATHMANDU: Nepal Rastra Bank has revised the guidelines for current capital loans under the “Working Capital Loan for Procurement, 2022” framework. The updated rules require banks and financial institutions to provide periodic loans rather than the previous 3–10 year term loans. Repayment periods for these periodic loans must now follow the bank’s current capital loan policy.
The revised directive also allows previously disbursed procurement working capital loans to be rescheduled once, based on the borrower’s cash flow and financial statement analysis, up to the end of July. However, such rescheduling will not be considered for loan classification or loan loss provisioning purposes.
Additionally, the amendments to the Integrated Directive 2026 allow loans disbursed to businesses displaced by the expansion of the Mahendra Highway and the Mid-Hill Highway to be restructured or rescheduled.
Under the revised framework, upon a borrower’s request, banks can reschedule or restructure loans by collecting at least 10 percent of the interest due, after evaluating the borrower’s cash flow and income. All such restructuring or rescheduling must be completed by the end of June.
Nepal Rastra Bank also emphasized that loans undergoing rescheduling or restructuring must maintain their original classification for accounting and loan loss provisioning purposes.








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