Nepal Rastra Bank has taken a flexible policy towards real estate transactions and stock market through the upcoming monetary policy. Rashtra Bank Governor Vishwanath Paudel announced the monetary policy on Friday and increased the loan limit for construction or purchase of private residential houses.

Share investors have been demanding to remove the personal share mortgage loan limit, so the National Bank has increased it. Governor Paudel said that the personal share mortgage loan limit will be increased from 15 million rupees to 25 million rupees through monetary policy. 

"The existing single customer credit limit for margin loans from banks and financial institutions to share securities will be increased from 150 million to 250 million rupees," the monetary policy states. Investors say that the monetary policy that is friendly to the stock market has come. 

Stockbroker Association Chairman Sagar Dhakal said that monetary policy has come to stimulate the stock market. "We asked to remove the share mortgage loan limit, even if it is not removed, increasing the limit will have a positive effect on the overall stock market," he said. "We understand that increasing the dividend review of more than 15 percent of microfinance," said Dhakal, "This will benefit investors." It helps to increase the stock market.'

It is also mentioned in the monetary policy that loans of up to 3 lakh rupees given to young people going for foreign employment, with or without taking mortgage, can be counted as loans of the poor. Governor Paudel said that in case of women, such loans will be given at a maximum of 5 lakh rupees. "In order to ensure that the loans of microfinance institutions reach the target groups and increase the utilization of loans, the target groups for microfinance, the criteria for receiving loans and the eligibility of borrowers will be reviewed," said the monetary policy.

Rastra Bank has raised the limit of loans for construction and purchase of private residential houses to 3 crore rupees. Earlier, the limit of such loan was one and a half crore rupees. According to the National Bank, the maximum loan-to-value ratio for the construction and purchase of the first house will be 80 percent. Earlier, the loan-to-value ratio was 60 percent. 

In the case of other real estate loans, the National Bank has said that arrangements will be made to maintain a maximum of 70 percent. Businessmen say that previously, the loan-to-value ratio was only 50 percent in case of other real estate loans. President of Nepal Land and Housing Development Federation Bishnu Ghimire said that the monetary policy introduced by the new governor is welcome. "We have been demanding to increase the loan-to-value ratio of personal real estate loans and other loans, it has been addressed through the monetary policy," he said, "a welcome monetary policy has come." He said that the monetary policy has come to make the real estate business more viable. "Real estate business is not only limited to real estate, it is connected with various industries such as cement, bricks, and sand," Ghimire said. Ganesh Karki, Chairman of Independent Power Producers Association, Nepal (IPPAN), said that there was only one point related to the energy sector, but it was positive. "Monetary policy seems to be trying to touch the energy sector," he said.