Nepal Rastra Bank has asked borrowers who take loans from banks and financial institutions to take loans only after understanding the bank’s terms and conditions. The National Bank has requested this after the complaints of loans have started to increase regarding the service charges and interest rates charged by the bank.
The Central Bank has issued a notification on Tuesday asking to use the loan by understanding the conditions of interest rate determination and interest rate change. It has been warned that if there is no harmony between interest and income, there may be problems in loan repayment. The bank said that if a person with a fixed income uses a loan at a variable interest rate, there will be no harmony between income and expenses and there will be problems in loan repayment.
“The interest amount does not increase when using a loan at a fixed interest rate. The loan can be repaid within the specified period and it will not negatively affect the financial condition of the people with fixed income,” said the notification issued by the National Bank.