ECONOMY

NRB paves the way for people to obtain loans of up to Rs 5 million by pledging gold with BFIs

KATHMANDU, Oct 9: The general public will be able to obtain loans of up to Rs 5 million by pledging gold with banks and financial institutions (BFIs).
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By Republica

KATHMANDU, Oct 9: The general public will be able to obtain loans of up to Rs 5 million by pledging gold with banks and financial institutions (BFIs).



The Nepal Rastra Bank (NRB) has established a single customer loan limit of Rs 5 million for gold and silver collateral through the unified directives issued to Class A, Class B, and Class C BFIs for the year 2023.


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Previously, no single loan limit had been established. The NRB has directed BFIs to set a single customer loan limit for loans already disbursed by mid-July, 2026.


According to the unified directive, BFIs must verify the gold or silver pledged as collateral before disbursing a loan to ensure that the loan is secured.


When disbursing a loan in this manner, the gold or silver pledged as collateral must be kept in a single pouch. If the borrower provides multiple pouches or if only one pouch contains gold or silver without proper verification, the loan will be subject to a 100 percent loss in the event of a default.


 

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