Monetary Policy 2082/83 Unveiled: Individual Margin Loan Limit Raised to Rs. 25 Crore; Interest Rate Corridor Eased, Real Estate Firms Offered Loan Restructuring Window

Nepal Rastra Bank Governor Prof. Dr. Biswo Nath Poudel has introduced the 59th monetary policy of the central bank, unveiling it live on television and social media today. This policy marks Governor Poudel’s first major directive since his appointment.

A key highlight of the new policy is the increase in the individual margin loan limit. Previously capped at Rs. 15 crore, the margin loan limit has now been raised to Rs. 25 crore. This change responds to demands from share investors who had been advocating for the removal or increase of the margin loan ceiling to support greater market participation.

In addition, the central bank has signaled a further easing in monetary conditions. The upper limit of the interest rate corridor (bank rate) has been reduced from 6.5% to 6%, while the policy rate has been brought down from 5% to 4.5%. The lower bound of the corridor has also been revised from 3% to 2.75%. Nepal Rastra Bank has committed to continuing the provision of standing liquidity facilities, with more flexible terms. For FY 2082/83, the central bank projects a 13% growth in broad money supply and up to 12% credit expansion to the private sector.

Additionally, the policy introduces a relief provision for real estate companies. If such companies are unable to repay loans on time, banks will now be allowed to restructure the loans by providing revised repayment timelines. This move is aimed at supporting liquidity and financial stability in the housing and construction sectors.