Rs 113 billion demand for central bank’s refinance facility from COVID-hit sectors

KATHMANDU: Citing that their business has been affected by the COVID-19, entrepreneurs have sought Rs 113 billion loan from banks and financial institutions (BFIs) under the refinancing facility of the Nepal Rastra Bank (NRB).

The central bank had accepted applications for such subsidized loan from pandemic-affected businesses till mid-October.

As per NRB, entrepreneurs have applied for refinancing loan worth Rs 72 billion through 44 banks and financial institutions. Such loan have been sought under the one-time micro, home and small enterprise loans and general and special loans.

Similarly, more than 200 people have applied for refinancing loan worth Rs 41 billion under loans up to a maximum of Rs 200 million per customer.

A total of over Rs200 billion is available for refinancing in the current fiscal year of which 70 percent will be provided by the central bank through commercial banks,  20 percent on case-by-case basis and 10 percent of the bulk to borrowers through microfinance institutions.

Under the refinance facility, the NRB provides funds to commercial banks at interest rates in the range of 1 to 3 percent. Commercial banks can take a maximum interest rate of five percent from borrowers for such loans to be disbursed among customers.

Fiscal Nepal |
Tuesday November 3, 2020, 09:52:27 AM |

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