PAN mandatory to take loan of more than 2.5 million

KATHMANDU, July 28: Those who take loans of more than 2.5 million rupees from banks and financial institutions have to compulsorily get a permanent account number (PAN) card. Nepal Rastra Bank issued a circular on Friday and made it mandatory for those who take loans of 2.5 million rupees or more, either separately or at once, to have a PAN.

The bank issued a circular after a week for the implementation of the monetary policy of the fiscal year 2080/81 issued last Sunday.

In addition, according to point no. 6 of the Integrated Directive no. 3, if the borrower falls under the same group when such group has taken a loan of Rs. 2.5 million or more, even if a person under that group has to provide a loan of less than Rs. 2.5 million, a PAN card is mandatory, the Bank has informed.

Also, the bank has said that the loan-to-value ratio can be maintained up to a maximum of 70 percent for residential home loans up to Rs. 200 thousand if the person taking the loan is buying or constructing the house for the first time.