KATHMANDU, July 12: In a major move to support aspiring homeowners, the Nepal Rastra Bank (NRB) has introduced a policy allowing banks and financial institutions to provide up to 80 percent financing for first-time home construction.
The measure, part of the new monetary policy unveiled by NRB Governor Dr. Bishwo Nath Paudel on Friday, is aimed at reviving credit flow and stimulating economic activity in the real estate and construction sectors.
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Governor Paudel, presenting his first monetary policy since taking office, said the central bank has taken a “cautiously accommodative” stance to ease financial conditions without compromising economic stability.
The first-time home construction provision is expected to benefit middle-class and lower-income families who have long struggled with high down payment requirements. It signals the central bank’s intent to support broader access to housing credit amid a sluggish property market.
Beyond housing, the policy outlines a 12 percent credit growth target for the fiscal year and introduces several liquidity-enhancing measures, including a reduction in the interest rate corridor and provision to issue NRB bonds when necessary.
