Kathmandu- The Nepal Rastra Bank (NRB) has revised the ‘Working Capital Loan Guidelines, 2022’.

Previously, banks and financial institutions provided loans for three to 10 years to meet ‘procurement working capital needs’. However, the new guidelines require periodic loans. The revised working procedure includes a provision that the repayment period of these periodic loans should align with the borrower’s working capital loan policy.

A new provision allows the rescheduling of periodic loans for ‘procurement working capital needs’ only once by mid-Ashar 2083. This rescheduling is based on the borrower’s cash flow and financial statements, considering the need and justification. Importantly, this rescheduling won’t affect loan classification or loan loss provision.

The Rastra Bank has also amended the Integrated Directive 2082, enabling loans provided to enterprises or businesses displaced due to the expansion of Mahendra Highway and Mid-Hill Highway to be restructured or rescheduled.

The revised integrated directive states that banks and financial institutions can analyze the borrower’s cash flow and income upon request. Based on necessity and justification, they can reschedule or restructure the loan by recovering at least 10 percent of the interest payable.