Nepal Rastra Bank Revises Digital Lending Guidelines, Raising Loan Limits for Individuals and Businesses

Nepal Rastra Bank (NRB), the country's central bank, has updated its rules for digital lending to make borrowing faster, easier, and cheaper through mobile apps and online portals. The newly revised "Digital Lending Guidelines" aim to improve public access to loans, reduce processing costs, and assist small businesses using modern technology.

Under the revised rules, individuals with salary or business income accounts can now borrow up to Rs 500,000 via digital platforms, with a repayment period of up to 3 years. Other individual borrowers without regular income accounts can receive up to Rs 200,000 for the same duration. Meanwhile, small and medium enterprises can access up to Rs 500,000 for short-term needs (up to 1 year) and up to Rs 1,000,000 for long term working capital loans, with durations set according to bank policies.

To ensure a smooth online process, banks are required to build dedicated digital portals or mobile apps for taking loan applications, assessing eligibility, and approving disbursements directly into the borrower's account. Banks are also allowed to partner with mobile wallet companies (Payment Service Providers) and digital tech providers to help reach customers and analyze creditworthiness. However, the central bank has strictly mandated that customer data must remain private, extra service fees cannot be charged for using third-party partners, and banks will bear all lending risks.