Eases provisions related to procurement working capital loans, allows limited rescheduling
KATHMANDU, MARCH 14
The Nepal Rastra Bank has revised the Working Capital Loan Guidelines, 2022, easing the provisions related to procurement working capital loans and allowing limited rescheduling of existing loans.
Under the earlier provision, banks and financial institutions provided loans for procurement working capital needs with tenures ranging from three to ten years.
The revised rule now requires such loans to be issued as term based credit. Banks must determine the repayment period based on their internal working capital loan policies.
The central bank has also allowed loans already issued under procurement working capital that need to be rescheduled once until mid July 2026. The rescheduling must be based on an analysis of the borrower's cash flow and financial statements and should be justified by necessity.
According to the revised guideline, such rescheduling will not be treated as a rescheduled loan for the purpose of loan classification and loan loss provisioning.
The central bank has also amended the Unified Directive, 2025 to allow loans issued to enterprises displaced by the expansion of the Mahendra Highway and the Mid-Hill Highway to be restructured or rescheduled.
Banks and financial institutions may restructure or reschedule such loans upon the borrower's request after analysing the borrower's cash flow and income.
The provision requires lenders to recover at least 10 per cent of the interest payable before approving the restructuring or rescheduling.