KATHMANDU, Feb 21: Nepal Rastra Bank (NRB) has said that it won’t allow banks to extend more than 50 percent of the valuation of the private vehicles while lending loan.
The NRB, the central bank of Nepal, took this decision to this effect, at a monetory policy mid-term review meeting held at Hotel Yak and Yeti on Tuesday.
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However, this provision does not apply to the loan taken for public and construction transportation vehicles.
The new limit has been imposed after the banks were alleged to have provided haphazard loans while procuring vehicles.
The NRB has taken this decision on the assumption that such a haphazard loan is causing shortage of lendable funds in banking system.
