KATHMANDU

The central bank has increased the loan limit on home mortgages to 50 percent of their value. The Nepal Rastra Bank has made this provision in the Unified Directive 2079, which was amended on Thursday.

The Nepal Rastra Bank has made provisions for obtaining loans up to 50 percent of the value of home mortgages. This provision has been made in the Unified Directive 2079, which was amended on Thursday.

Previously, in Kathmandu, there was a provision to obtain loans of only 30 percent of the market value of homes and 40 percent outside. The central bank has now established an equal ratio of loans with both internal and external mortgages, at 50 percent.

Furthermore, the central bank has also made provisions for obtaining personal overdraft loans of up to 50 percent on home mortgages. Similarly, banks have also reduced the provision for losses on real loans.

Now, banks will only have a provision for a maximum of 1.5 percent loss on real loans. Previously, this provision was 1.3 percent. Banks will now have a difference of more than 2 percent in determining the interest rates on loans and deposits of different natures.