Loan Financing in Nepal: Legal Framework and Procedures
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Loan Financing in Nepal: Legal Framework and Procedures at Rajiya Law Associates
Regulatory Framework of Commercial Loan Financing in Nepal
Corporate borrowing, debt syndication, and project loans are regulated by the Bank and Financial Institutions Act (BAFIA) and Nepal Rastra Bank directives.
1. Security and Mortgage Charge
Lenders secure debts through mortgages on real estate, hypothecation of assets, or corporate and personal guarantees registered at the Land Registry.
2. Consortium Lending
Large infrastructure projects exceeding specified funding caps require consortium structures involving multiple commercial banks led by a lead finance institution.
3. Foreign Debt Approval
Nepalese corporations seeking international loans must obtain approvals from the Ministry of Finance and Nepal Rastra Bank.
Rajiya Law Associates advises on project financing documentation, loan agreements, mortgage creation, and NRB debt approvals.
Our legal associates offer end-to-end consultancy and litigation services in this sector. We assist with regulatory filings, compliance audits, dispute resolution, and contractual drafting to safeguard our clients' interests.