Nepal Rastra Bank (NRB) has announced a new monetary policy for the fiscal year 2025/26. The central bank has prioritised capital investment by reducing the policy rate from 6.5 per cent to 6 per cent and the deposit facility rate from 3 per cent to 2.75 per cent, while maintaining the standing liquidity facility rate at 6 per cent. These measures were taken to reduce interest rates and encourage investments.
The new policy has notably eased credit provisions. The maximum loan limit for residential housing has been increased from 20 million rupees (approx. USD 145,881) to 30 million rupees (approx. USD 218,822). Similarly, the margin lending limit per customer has been raised from 150 million rupees (approx. USD 1.09 million) to 250 million rupees (approx. USD 1.82 million). For hotels and restaurants with food hygiene certification, loans of up to 30 million rupees (approx. USD 218,822) will be counted under SME lending and charged a maximum premium of 2 per cent above the base rate.
