The Nepal Rastra Bank is preparing to widen the scope of deprived sector lending while maintaining the mandatory 5 percent investment requirement for banks and financial institutions. The new framework is expected to include startups and collateral-free loans up to Rs 2.5 million within the deprived sector category. The move comes as credit demand weakens and the existing portfolio shrinks by 6.8 percent in the first eight months of FY 2025/26, falling from Rs 296 billion to Rs 276 billion. The policy aims to promote financial inclusion, encourage entrepreneurship, and diversify lending opportunities for banks.
