Nepal Rastra Bank has increased the risk weight of various types of loans forwarded by banks and financial institutions, including on share loans.
Effective from Ashar, 2079, personal Overdraft Loans shall attract a risk weight of 150%. Meanwhile, Personal Hire purchase/ Personal Auto loans shall attract a risk weight of 150%. There was no such requirement before.
Furthermore, Real Estate loans for land acquisition and development and lending against shares shall also attract a risk weight of 150%. Previously, lending against securities (bonds and shares) attracted a risk weight of 100%.
Trust Receipt Loans for Trading Firms will now attract a risk weight of 120%.
The central bank has also tightened the…
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