Banking Khabar / The Ministry of Finance has decided to release Rs 9.80 billion to Nepal Rastra Bank (NRB) for the payment of interest subsidies on concessional loans.
According to Ministry spokesperson Tanka Prasad Pandey, the amount allocated for the second quarter of the current fiscal year will instead be released in the first quarter by ministerial decision.
The ministry’s press statement said the decision was made under the “Integrated Procedure on Concessional Loan Interest Subsidy, 2082,” allowing NRB to reimburse banks and financial institutions for subsidized loans disbursed over the past seven quarters.
NRB had long awaited the government’s release of the subsidy amount, which is expected to ease further loan expansion.
As per the procedure, concessional loans include:
Up to Rs 50 million for agriculture and livestock loans
Up to Rs 2.5 million for women entrepreneurship and startup businesses
Up to Rs 2 million for returnee migrants and educated youth projects
Up to Rs 500,000 for private housing of disaster victims
The government provides subsidies to cover the interest on such concessional loans disbursed by banks and financial institutions.
