The National Bank has issued a circular to implement the revised provisions.
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The National Bank has become more flexible in its guidelines on working capital loans. The National Bank has revised the guidelines through a review of monetary policy.
The National Bank has issued a circular to implement the revised provisions. In which, by revising the guidelines on working capital loans, banks and financial institutions have been allowed to determine the period of stable working capital based on the analysis of the borrower's cash flow and financial statements.
According to the new provision, the borrower will have to keep the outstanding balance of the working capital loan less than 30 percent for at least 7 consecutive days of the year. Currently, the borrower has to keep the outstanding balance of the working capital loan less than 10 percent for at least 7 consecutive days of the year. This has been increased to 30 percent. For example, if a borrower has taken a working capital loan of Rs 10 million, the earlier provision was that he had to repay at least Rs 9 million of the loan taken for 7 consecutive days of the year. According to the new provision, now it will be enough for the borrower to repay at least 70 percent of the loan for 7 consecutive days.
'Banks and financial institutions should provide periodic loans for stable working capital loans. The repayment period of such periodic loans should be determined in accordance with their current capital loan policy. The limit as per sub-point (b) will not apply to this loan,' the directive states, 'In the fixed working capital loan that has flowed previously, periodic loans of a nature may be rescheduled only once by mid-Ashar 2083, based on the need and justification, after analyzing the borrower's cash flow and financial statements.'
