Kathmandu. From now onward, banks and financial institutions can disburse personal loans up to one crore rupees which are not disclosed for the purpose of overdrawing.

Nepal Rastra Bank (NRB) has issued a circular to this effect.

According to the central bank, the banks and financial institutions should maintain a hundred percent loan loss provision in the amount exceeding the specified limit.

Similarly, the interest rate of the loan to be provided to licensed institutions as per the prevailing Act has been set at 5.75 percent. Earlier, the interest rate was six percent.