Lumbini Bikas Bank Loan Notice: 21-Day Deadline for Borrowers
19th March 2026, Kathmandu
Lumbini Bikas Bank Limited has issued an urgent public notice directed at defaulting borrowers, establishing a strict 21-day deadline for the settlement of outstanding dues.
Lumbini Bikas Bank Loan
This Lumbini Bikas Bank Loan notice serves as a final legal warning before the bank initiates the formal auction of collateral properties. The announcement, published on March 19, 2026, targets individuals and firms that have failed to regularize their loan accounts despite multiple prior reminders and private correspondence.
Key Mandates of the 21-Day Notice
The Lumbini Bikas Bank Loan recovery department has clarified that this window is the last opportunity for borrowers to retain ownership of their mortgaged assets.
Repayment Requirement: Borrowers must clear the total accumulated principal, regular interest, penal interest, and any administrative charges incurred during the recovery process.
Effective Deadline: All payments must be settled within 21 days from the date of this notice publication.
Consequence of Non-Compliance: If the deadline passes without full settlement, the bank will move the concerned properties into the “Blacklist” category and proceed with a public auction (Lilami Bikri).
Collateral and Property Details
The Lumbini Bikas Bank Loan notice specifically lists several high-value properties that are now at risk of liquidation. These assets were pledged as security at the time of loan disbursement and include:
Residential Buildings: Houses and bungalows located in prime areas of Kathmandu and Lalitpur.
Land Parcels: Agricultural and commercial plots situated in the Chitwan and Nawalparasi districts.
Corporate Assets: Office equipment and industrial machinery belonging to defaulting firms in the manufacturing sector.
The notice provides specific details including the Ghar-Jagga (House-Land) registration numbers, ward locations, and the names of the original landowners and guarantors.
The Legal Auction Process (Lilami)
Should the borrowers fail to meet the 21-day requirement, Lumbini Bikas Bank will follow the standard recovery protocols mandated by the Debt Recovery Act and Nepal Rastra Bank guidelines.
Valuation: An independent engineer will conduct a current market valuation of the collateral to set a “Base Price” for bidding.
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Public Tender: A formal invitation for bids will be published in national dailies, allowing the general public to submit sealed quotations.
Bidding & Allocation: The property will be sold to the highest bidder. If the auction proceeds exceed the total loan liability, the surplus is returned to the borrower.
Shortfall Liability: If the auction fails to cover the entire debt, the bank reserves the right to freeze the borrower’s other bank accounts or seize additional personal assets to recover the remaining balance.
Strategic Impact on Bank Health
For an institution like Lumbini Bikas Bank Ltd., these aggressive recovery notices are essential for maintaining a healthy Non-Performing Loan (NPL) ratio.
Liquidity Management: Recovering “stuck” capital allows the bank to issue new loans to productive sectors like agriculture and small businesses.
Financial Discipline: Public notices act as a deterrent, encouraging other borrowers to maintain timely repayment schedules.
Regulatory Compliance: Commercial and development banks must show active recovery efforts to satisfy the central bank’s audit requirements regarding asset quality.
Immediate Steps for Borrowers
If your name or firm is listed in the Lumbini Bikas Bank Loan notice, financial experts suggest the following immediate actions:
Direct Communication: Visit the concerned branch manager immediately to discuss a potential “Loan Restructuring” or “Rescheduling” if you are facing temporary cash flow issues.
Partial Payment: Making a significant partial payment may sometimes persuade the bank to extend the auction deadline or hold the legal proceedings.
Legal Consultation: Verify if the notice complies with all procedural requirements under the Banking Offense and Punishment Act.
Conclusion
The 21-day notice from Lumbini Bikas Bank is a critical legal milestone that should not be ignored. For the bank, it is a necessary step toward financial stability; for the borrower, it is a final call to save their property from public sale. As the 21-day countdown begins, prompt coordination with the bank’s recovery department is the only way to prevent irreversible financial and reputational loss.
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