NRB Eases Loan Rules for Farmers and SMEs in Fresh Monetary Policy Review

Nepal Rastra Bank (NRB) has unveiled new policy measures aimed at boosting the agriculture and micro, small, and medium enterprise (MSME) sectors through its Annual Monetary Policy Review for FY 2082/83. As part of the reforms, the central bank has simplified the collateral valuation process for small loans. Under the new provision, banks and financial institutions can now allow their own employees to value collateral for loans of up to Rs 1 million extended to agriculture and MSMEs, eliminating the previous requirement for external professional valuers. The move is expected to reduce costs, speed up loan processing, and improve access to finance for small borrowers. NRB has also introduced a farmer-friendly loan repayment framework by requiring agricultural loan installments to be aligned with crop production and harvesting cycles. Banks and financial institutions must now structure repayment schedules based on the period when farmers harvest their crops or sell their produce and generate income, rather than following fixed repayment dates. The central bank said the new arrangement is intended to make agricultural financing more practical, improve farmers' repayment capacity, and encourage greater credit flow to Nepal's agricultural sector.