Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has widened the scope of loans issued through the electronic medium.

Nepal Rastra Bank (NRB) has widened the scope of digital loans by amending its lending guidelines on electronic credit, 2078.

With this, micro, small and medium enterprises will be able to provide loans through digital medium. Those who have a salary, professional and business income deposit account in banks and financial institutions can take a maximum of Rs 5 lakh. Its duration will be 3 years. Similarly, other natural people can take a loan of up to Rs 2 lakh. Its duration is 3 years.

Micro, small and medium enterprises can get a loan of up to Rs 5 lakh under short-term working capital loan. Its duration is 1 year. Similarly, loans can be provided up to Rs 10 lakh under long-term working capital loan. The loan period will be determined by the concerned banks and financial institutions according to their loan policy.

“If a bank or financial institution provides loan to a merchant associated with a payment service provider subject to the credit limit specified in this guideline, the payment service provider may, with the consent of the merchant, provide the necessary details related to his business and transaction to the bank or financial institution for the purpose of credit analysis,” reads the guideline.

Similarly, banks and financial institutions will be able to obtain the necessary details related to the customer’s business and transaction with the consent of the customer through the institution providing the system and technology to the customers who want to use the loan.

The inherent risk inherent in the loan issued in this way will remain in the concerned banks and financial institutions. The bank or financial institution should enter into an agreement with the institution providing such details including the process of obtaining the details, confidentiality and authenticity of the details, consent of the customers, etc.