KATHMANDU, Oct 8: Partially addressing the demand of stock traders, Nepal Rastra Bank (NRB) has increased the cap on share mortgage loans from Rs 120 million to Rs 200 million. Similarly, the limit for taking personal loans has been increased to Rs 150 million.

The NRB has revised the Unified Directive 2079 BS issued to banks and financial institutions of 'A', 'B' and 'C' categories and increased the share mortgage loan limit.  

"The maximum single customer credit limit for margin-type loans from any or all licensed institutions on share securities have been fixed at Rs 150 million," the circular issued by the NRB reads. "For institutional investors established with the main purpose of investing in the securities market, the maximum limit of such loans has been set at Rs 200 million."

Earlier, the maximum single customer credit limit for margin loans in equity securities from any or all licensed institutions was set at Rs 120 million. Share investors have been advocating raising the limit to at least Rs 200 million for individuals and for the removal of a maximum limit for institutions.

 
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