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Kathmandu. Nepal Rastra Bank has amended the provision to change the loan interest rate only after one quarter.
In the guidelines issued by the Rashtra Bank to banks and financial institutions on Monday, the rule that previously existed that the loan interest rate can be changed only once in a quarter has been removed.
With this amendment, the interest rate of new or old loans can now be reduced on a monthly basis. Along with the base rate of the bank, the interest rate of the loan will also decrease.
Recently, even if the interest rate of deposits has decreased and the Aadhaar rate has decreased, the old borrowers who are forced to pay high interest will be relieved.
According to the new guidelines, banks and financial institutions will now have to change the loan interest rate monthly up to the limit of the increase or decrease in the average base rate of the last three months. However, the National Bank has also stated that this arrangement will not prevent interest rates from being reduced by more than the average base rate change of the last three months, not increasing the interest rate under any circumstances and maintaining a stable interest rate in agreement with the borrower.
Similarly, banks and financial institutions should make arrangements to change the interest rate of loans automatically according to the change in the base rate, and when the interest rate is reduced, all the customers should get the benefits equally.