“Now onwards, personal home loans up to Rs 8 million will be excluded from real estate loans,” a board member of NRB told Republica.[break]
Prior to the revision, such a ceiling for personal home loans was Rs 6 million. The NRB had permitted BFIs to exclude home loans up to Rs 6 million from real estate loans in mid-March.
Considering the increasing exposure of BFIs in real estate lending, NRB had imposed a cap about one and half years ago, asking BFIs to limit their realty lending to 25 percent of their total lending portfolio.
The central bank has also decided to reschedule realty lending for one more year, effective from new fiscal year, to ease repayment.
NRB has also liberalized margin lending - loan issued against collateral of shares, allowing BFIs to issue loan at their own risk. “Any BFIs could issue loan by assessing the risk factor on their own,” the official said.
Earlier, the central bank was allowing BFIS to issue margin lending up to 60 percent of the average price of shares pledged as collateral.
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