Banks to provide loans digitally

Banks and financial institutions will now be able to provide loans to customers digitally. Nepal Rastra Bank (NRB) has implemented the arrangement by issuing guidelines on digital lending today.

As per the guidelines issued by NRB, banks and financial institutions will be able to give loans up to a maximum of Rs 500,000 through electronic medium. Only customers with salary, professional or business accounts in banks and financial institutions will get the service.

In order to provide the loan, banks and financial institutions will have to create a separate website (portal) and obtain the required documents including application through the same medium. Concerned banks and financial institutions will also have to provide digital information to the customer whether the loan has been approved or not. The loan taken through digital medium should be repaid within maximum three years.