Informal Lending Nepal

Borrowing and Lending Law in Nepal (2026): Civil Code 2074 + NRB

A 2026 practitioner's guide to borrowing and lending in Nepal under the Muluki Civil Code 2074 and the Nepal Rastra Bank framework — Section 478 interest provisions, the Section 481 statutory cap that total cumulative interest cannot exceed principal, the Tamasuk loan deed, secured lending through pledge / mortgage / hypothecation, the 10-year limitation for loan recovery, licensed-lender regulation under NRB, cheque-bounce recovery under Penal Code Section 484, and the document trail that holds up at the District Court.