The refinance loans issue increased by Rs 40.85 billion in the last two months
KATHMANDU, May 16: Nepal Rastra Bank (NRB) has released a total of Rs 123.14 billion to 48,860 individuals under refinance schemes in the first nine months of the current fiscal year.
The NRB records show that the central bank issued an additional refinance loan of Rs 40.85 billion, one–third of the total amount, just in two months’ period from mid-February to mid-April. The refinance schemes are aimed at supporting the business enterprises that suffered due to the adverse impacts of the lockdown and the coronavirus.
NRB issues refinance loans of Rs 82.29 billion in seven months
The monetary policy has earmarked around Rs 150 billion for refinance to the coronavirus-affected firms via banks and financial institutions (BFIs). Under refinancing loans, NRB has let the BFIs issue personal loans and business loans of up to Rs 50 million at a low interest rate of up to five percent.
With strict provisions in place, the central bank, however, received very few responses from the firms concerned as of December end, last year. After revising related guidelines in January, followed by the spread of the second wave of the pandemic, the central bank has been receiving an increasing number of applications, according to NRB.
In addition, the BFIs provided subsidized loans worth Rs 142.02 billion to 89,879 borrowers during the review period. This shows that an additional loan of Rs 30 billion was issued in two months’ period from mid-February to mid-April under this heading.
Of the amount provided under subsidized loans, Rs 96.60 billion was provided to 42,447 individuals related to agriculture and livestock related businesses. Similarly, more than 45,000 women took subsidized loans of Rs 42.16 billion under women entrepreneurship loans.
