Nepal Bank Loan Settlement Offer Introduces Interest Relief Program

18th March 2026, Kathmandu

Nepal Bank Limited has announced a major relief program for its borrowers through the Nepal Bank Loan Settlement Offer.

Nepal Bank Loan Settlement

This initiative is designed to assist customers in clearing overdue debts or regularizing active accounts by providing significant interest concessions. Aimed at reducing the bank’s Non-Performing Assets (NPA) while supporting the financial recovery of its clients, the scheme offers a structured pathway for debt resolution across various loan categories.

Breakdown of the Interest Relief Program

The Nepal Bank Loan Settlement Offer categorizes borrowers into two primary groups based on the age and status of their credit facility. This ensures that both long-term defaulters and those facing recent liquidity issues can find a viable settlement option.

1. Settlement for “Bad” and Written-off Loans

This segment targets the most distressed accounts. Borrowers whose loans were classified as “Loss” or “Bad” prior to Chaitra 2079 (mid-April 2023) are eligible for the highest level of concessions.

Eligibility Cap: Loans with a principal amount up to NPR 1 crore.

Settlement Deadline: Borrowers have until Ashadh 2083 to complete the full settlement.

Benefit: Substantial waivers on accrued interest and penalties, allowing the borrower to exit the debt trap by paying the principal and a fraction of the calculated interest.

2. Regularization for Inactive and Active Loans

For more recent credit issues, the Nepal Bank Loan Settlement Offer provides a “Regularization” facility for loans classified as inactive or active after Baishakh 1, 2080.

Deadline for Action: Regularization must be completed by Chaitra 2082.

Benefit: Interest relief is provided as a reward for the timely repayment of the principal and the remaining interest portion. This helps businesses and individuals lower their cost of capital during difficult economic cycles.

Step-by-Step Process to Avail the Offer

To benefit from the Nepal Bank Loan Settlement Offer, borrowers are encouraged to follow a transparent, branch-led process:

Branch Consultation: Visit the specific Nepal Bank branch where the loan was originally disbursed.

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Eligibility Verification: Request a detailed “Statement of Account” to see your current classification (Active, Sub-standard, Doubtful, or Loss).

Written Application: Submit a formal request to settle under the “Interest Relief Scheme 2082/83.”

Final Payment: Once the bank calculates the concession amount, the borrower must deposit the agreed-upon sum within the specified timeframe to receive a “No Dues Certificate.”

Strategic Benefits for the Borrower and the Bank

The Nepal Bank Loan Settlement Offer is a strategic “win-win” for the Nepali financial ecosystem.

For the Borrower:

Credit Score Restoration: Settling “Bad” loans allows the borrower’s name to be removed from the Credit Information Bureau (CIB) black list, restoring their eligibility for future credit.

Financial Breathing Room: Significant reduction in total liability through the waiver of compound interest and late fees.

For Nepal Bank Limited:

NPA Reduction: Cleaning up the balance sheet by recovering stuck capital.

Liquidity Inflow: Immediate cash flow into the bank, which can then be redeployed into productive sectors like agriculture and IT.

Customer Loyalty: Strengthening the relationship between the nation’s oldest bank and its diverse customer base.

Economic Context and Industry Impact

The introduction of the Nepal Bank Loan Settlement Offer comes at a time when many businesses in Nepal are struggling with high interest rates and sluggish market demand. By taking a proactive stance, Nepal Bank is setting a precedent for other commercial banks to offer similar “exit ramps” for stressed borrowers. This move aligns with the Nepal Rastra Bank’s goal of maintaining financial sector stability while ensuring that the credit cycle remains functional.

Conclusion

The Nepal Bank Loan Settlement Offer is a limited-time opportunity for borrowers to reclaim their financial standing. Whether you are looking to settle a long-standing “written-off” debt or simply want to lower the interest burden on a more recent loan, this program provides a clear and regulated framework to do so. Eligible customers should act swiftly before the Chaitra 2082 and Ashadh 2083 deadlines to ensure they do not miss out on these rare concessions.

For More: Nepal Bank Loan Settlement