Nepal Rastra Bank (NRB) has announced a monetary policy for the fiscal year 2080-81 (2023/24).

The following are the highlights for the Real Estate and Housing sector in Monetary Policy 2080-81:

Predominance of real estate loans:
Banks and financial institutions have primarily provided mortgage loans for real estate, accounting for 68 percent of total loans disbursed by these institutions until the end of Jestha in the fiscal year 2079/80. According to NRB data, loans totaling Rs. 48.58 Kharba were disbursed during that time period, with houses and land serving as collateral for loans totaling Rs. 33.3 Kharba.

NRB raises housing loan limit to facilitate house building :
Nepal Rastra Bank (NRB) has announced a progressive monetary policy for the fiscal year 2080-81 (2023/24), with the goal of assisting in the construction of houses for individuals and families. As part of this policy, the bank has increased the maximum housing loan limit by five million rupees. Prospective homeowners can now apply for a bank loan of up to 20 million rupees to build their dream homes under the new guidelines. This is a significant increase over the previous loan limit of 15 million rupees, making it more convenient for individuals seeking housing loans.

NRB's Role in Regulating Real Estate Sector:
The Nepal Rastra Bank (NRB) regulates the real estate sector to ensure financial stability. By maintaining the loan-to-value ratio, the NRB aims to strike a balance between promoting responsible lending and managing real estate market risks.

click [ HERE ]  to view complete Monetary Policy 2080-2081 (2023/ 2024) Nepal