Nepal Rastra Bank's New Directive: Provision for Good Loans Reduced, Loan-to-Value Ratio Amended

Nepal Rastra Bank has amended its unified directive following the mid-term review of monetary policy. The provision rate for good loans has been reduced from 1.10% to 1%, which will positively impact the profits of banks and financial institutions. Additionally, the loan-to-value (LTV) ratio for personal and electric vehicles has been set at 60%. Previously, it was 80% for EVs and 50% for petrol-diesel vehicles. Banks, financial institutions, and microfinance companies have been directed to implement these provisions.