Nepal's central bank has decided to permit Nepali citizens to borrow foreign loan up to 200,000 U.S. dollars from individuals, relatives, organizations and institutions based abroad.

The new rule was introduced in line with the commitment made through the Monetary Policy in July 2012, thus ending the ban on Nepali individuals from acquiring credit from foreign land, local media reported Thursday.

"The provision will facilitate individuals who want to start or expand business with money borrowed from those based in foreign countries," said Executive Director Lila P. Sitaula of the bank, quoted by the Republica daily newspaper.

However, to acquire loans from abroad, individuals have to obtain permission from the central bank first.