Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has clarified that borrowers have moral and legal obligations to repay their loans after taking loans.
The central bank made this clear by issuing a cautionary message for financial awareness today. According to the NRB, it is the moral and legal obligation of the borrower to repay the loan as the amount is the property of the common savers.
Banks and financial institutions accept the savings of the general public as deposits. These deposits are issued as loans by banks and financial institutions subject to the specified conditions to meet the needs of individuals and institutions.
The central bank has stated that it is the legal obligation of the borrower to repay the loan as per the terms and conditions set by the banks and financial institutions while enjoying the loan. “Failure to repay loan under someone’s illusion or intention is against the financial discipline and conduct,” the NRB has stated.
Nepal Rastra Bank (NRB) has warned that if the loan is not repaid, the borrowers and guarantors may be blacklisted, legal action like mortgage security auction and even social exclusion.
