Kathmandu. Nepal Rastra Bank (NRB), the central bank of Nepal, has introduced a new provision on the interest rates set by the companies issuing hire purchase loans. <\/p>\n
The Nepal Rastra Bank (NRB) has issued the Sixth Amendment to the Policy and Procedural Provisions for Approving Companies Issuing Hire Purchase Loans, 2070. In the same revised provision, the Nepal Rastra Bank has set new criteria for determining the interest rate. <\/p>\n
Now, companies will have to take the cost of funds as the basis for determining the interest rate of the loan. The cost of funding should be taken into account as the cost of self-capital and the weighted cost of funds derived from loans. <\/p>\n
Similarly, companies will also have to publish information related to interest rates. The information should be given to the supervision department of the Rastra Bank within 3 days while determining the interest rate. <\/p>\n
Companies will not be allowed to increase the interest rate by more than 2 percent on the interest rate of the loan issued to the customer. <\/p>\n
Penal Interest Rate<\/strong><\/span><\/p>\n }<\/p>\n The company should mention the annual penalty interest rate not more than 2 percentage points in the agreement with the borrower while issuing the loan. While calculating the penal interest, the amount of the expired installment will not be charged more than the amount fixed for the period of delay due by the annual penalty interest rate and the amount will not be recovered by charging interest on the penal interest. <\/p>\n Service Charge<\/strong><\/span><\/p>\n Hire purchase companies will be allowed to take only up to 1 percent of the approved loan amount at the time of approving loans. However, the company shall not be hindered from charging service charge to its customers in such a way that it does not exceed the cost in order to obtain the service through other organizations or agencies as per the need.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. Nepal Rastra Bank (NRB), the central bank of Nepal, has introduced a new provision on the interest rates set by the companies issuing hire purchase loans. The Nepal Rastra Bank (NRB) has issued the Sixth Amendment to the Policy and Procedural Provisions for Approving Companies Issuing Hire Purchase Loans, 2070. In the same revised […]<\/p>\n","protected":false},"author":16,"featured_media":229318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45117,45031,45159],"tags":[],"class_list":["post-310503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bank-finance-en","category-banner-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=310503"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310503\/revisions"}],"predecessor-version":[{"id":310504,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310503\/revisions\/310504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/229318"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=310503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=310503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=310503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}