Kumari Bank’s Urgent Loan Repayment and Legal Compliance Notice 2082
1st February 2026, Kathmandu
Kumari Bank Limited, one of the leading commercial banks in Nepal, has taken a decisive step toward debt recovery and asset quality management by issuing an urgent 35 day public notice for loan repayment. This formal notification, published on Magh 18, 2082 (February 1, 2026), targets specific individual and corporate borrowers who have defaulted on their financial obligations.
Kumari Bank’s Urgent Loan Repayment
The bank has made it clear that this represents a final opportunity for debtors to regularize their accounts before the institution proceeds with more aggressive legal and recovery measures as permitted under the Bank and Financial Institutions Act and Nepal Rastra Bank guidelines.
The Core Purpose of the 35 Day Public Notice
The issuance of a 35 day public notice is a critical legal prerequisite in the Nepalese banking sector. According to the prevailing laws, banks must provide a final window for borrowers to settle their dues before taking possession of or auctioning the collateral pledged at the time of the loan agreement. This specific notice from Kumari Bank is aimed at a group of borrowers who have repeatedly failed to respond to previous private communications, phone calls, and written reminders from the bank’s various branch offices, most notably the Bagbazar branch in Kathmandu.
By making this a public notice, the bank essentially fulfills its transparency requirements, ensuring that the borrowers, their families, and the general public are informed of the impending legal status of the associated properties and financial reputations.
Terms of Repayment and Immediate Actions Required
Borrowers mentioned in the Magh 18 notice are instructed to clear the following amounts within the 35 day timeframe:
Principal Balance: The entire remaining principal amount of the loan.
Accrued Interest: All interest that has accumulated since the date of the last successful payment.
Penal Interest and Fees: Additional charges incurred due to the delay in payment, including late fees and legal administrative costs.
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The bank has specified that the total amount must be deposited or settled in full at the branch from which the loan was originally disbursed. For many of the current list of defaulters, the primary contact point is the Bagbazar branch, reachable at 01 5346991. The bank’s corporate office at Tangal, Kathmandu, is also overseeing the recovery through its specialized Assets Recovery Department.
Legal Consequences of Continued Default
The bank has warned that failure to comply with this notice will lead to immediate and non negotiable legal actions. These consequences are severe and can have long lasting impacts on the personal and professional lives of the borrowers and their guarantors.
Public Auction of Collateral: Once the 35 day period expires, the bank is legally authorized to initiate a 15 day auction notice. This process involves the valuation and subsequent sale of the land, buildings, or other assets pledged as security. The proceeds from this sale are used to cover the bank’s dues, and any surplus is returned to the borrower, though the properties are often sold at a competitive market rate that may be lower than the owner’s expectations.
Blacklisting by the Credit Information Bureau (CIB): Defaulters and their personal guarantors will be recommended for blacklisting. Once a name is listed in the CIB database, that individual or firm is barred from opening new bank accounts, obtaining credit cards, or taking any form of loan from any bank or financial institution in Nepal.
Seizure of Other Assets: If the sale of the primary collateral is insufficient to cover the total debt, the bank can move to freeze and seize other bank accounts, shares, and movable assets owned by the borrower or the guarantor.
Restrictions on Travel and Government Services: Persistent defaulters may face additional restrictions, including the withholding of passports and limitations on certain government related services as per the Banking Offence and Punishment Act.
Guidance for Affected Borrowers
Kumari Bank has emphasized that while the notice is a legal warning, it also provides an opportunity for dialogue. Borrowers facing genuine financial hardships due to the current economic climate are encouraged to visit their respective branches to discuss potential settlement options. In some cases, the bank may offer restructuring or rescheduling of the loan, provided the borrower shows a clear commitment and provides a viable repayment plan.
For further information regarding the specific list of borrowers or the exact amount due, individuals are urged to contact the Kumari Bank Call Center at 01 5970499 or visit the nearest branch office immediately. Ignoring this public notice will lead to the irreversible loss of property and the permanent staining of one’s credit history.
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