Kathmandu-Banks, financial institutions, and cooperatives must now complete online mortgage lien registration and release processes within 24 hours. The Department of Land Management and Archives has directed all Land Revenue Offices to ensure faster and more effective service delivery.

According to the directive, applications received before 12 noon must be processed on the same day, while those submitted afterward must be completed by 12 noon the following day at the latest.

The government had made online mortgage lien registration and release mandatory for banks and financial institutions from May 4, 2026, and for microfinance institutions from May 14, 2026. However, delays at Land Revenue Offices had led to growing complaints from service users.

To address these issues, the department issued a nine-point directive after receiving suggestions from the Nepal Bankers’ Association regarding delays and inconsistent implementation.

The new provision also simplifies partial lien releases. Banks can now request the release of specific plots or ownership shares while the remaining mortgaged property stays under lien.

Similarly, if the borrower, lender, and guarantor remain unchanged, additional loans can be issued against the same collateral while maintaining the existing lien.

The directive further clarifies that if a house is built on mortgaged land, the property owner can apply for official registration with a recommendation from the local government, after which the concerned bank must be informed.

Although such provisions already existed in the Land Administration Directive 2081, implementation had remained weak. The department has now made compliance mandatory.

The department has also asked the Nepal Bankers’ Association to prepare a standardized mortgage deed format, as different document formats used by banks have been creating administrative complications.