NRB opens digital credit door for small businesses, loans up to Rs. 1 Million

Kathmandu – Nepal Rastra Bank (NRB) has expanded its digital lending framework, enabling micro, small, and medium-sized enterprises (MSMEs) to access loans of up to Rs. 1 million through digital platforms.

The Payment Systems Department of the central bank has revised its Digital Lending Guidelines, broadening the scope of electronic credit facilities that were previously limited to salaried individuals and professionals with verified income accounts in banks and financial institutions.With the new provisions, MSMEs can now benefit from faster, technology-driven loan processing designed to improve access to formal credit and reduce reliance on traditional paperwork-based lending systems.

Under the revised framework, MSME borrowers will be eligible for two categories of digital loans. Short-term working capital loans of up to Rs. 500,000 will be available with a repayment period of up to one year. In addition, long-term working capital loans of up to Rs. 1 million will be offered, with repayment terms determined by individual banks in line with their internal policies.Officials at NRB say the move is aimed at strengthening financial inclusion and promoting digital banking across Nepal’s business sector, particularly for entrepreneurs who have historically faced challenges in accessing timely credit.

The updated guidelines also allow banks and financial institutions to collaborate with payment service providers (PSPs) and technology service providers (TSPs) to assess borrowers’ business activity. With customer consent, relevant transaction and business data can be shared electronically to support credit evaluation and loan approval processes.While third-party digital platforms may assist in data collection and loan assessment, NRB has clarified that the lending risk will remain fully with the respective bank or financial institution.

Industry stakeholders believe the expansion of digital lending will encourage wider adoption of fintech solutions, improve credit accessibility for small businesses, and contribute to the growth of Nepal’s MSME sector.The policy shift aligns with Nepal’s broader push toward a cashless, digitally integrated financial ecosystem.