KATHMANDU, July 11: Nepal Rastra Bank (NRB) is set to introduce a system where individuals can obtain loans from banks and financial institutions based on their credit scores.
Although the concept of credit scores has been discussed for the past few years, the 24th monetary policy made public on Friday formally mentions that banks and financial institutions will begin adopting a lending policy that considers customers' credit scores.
NRB makes stricter rules for microfinance loans
According to the NRB, individual borrowers who have been repaying their loans on time will be eligible for new loans based on their consistent repayment history.
This provision will come into effect from the upcoming fiscal year.
Many developed, emerging, and developing economies have already adopted credit-score-based lending systems.
