Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has revised the concessional loan procedures, significantly expanding facilities for agriculture, women entrepreneurs, returnee migrants, startups, and disaster-affected households. The move, according to the Ministry of Finance, aims to modernize traditional skills and occupations, promote entrepreneurship, and support private housing construction for natural disaster victims through subsidized interest, insurance, and security fees.
With the revised guidelines, banks and financial institutions (BFIs) have been mandated to simplify loan disbursement, while several loan ceilings have been raised to encourage wider access.
Under the new provisions:
Agriculture and livestock loans can now go up to Rs 50 million. Unlike before, when only commercial farming qualified, all types of agriculture are now eligible.
Women entrepreneurship loans have been increased to Rs 2.5 million.
Returnee migrants aspiring to become self-employed can now access loans of up to Rs 2 million.
Educated youth project loans and Dalit community Bhagwat Sarvajit entrepreneurship loans have both been raised to Rs 2 million.
Startup loans have been enhanced to Rs 2.5 million, while broiler replacement loans in industries have also been capped at Rs 2.5 million.
For the first time, disaster-affected households will be eligible for housing loans of up to Rs 500,000.
The revised procedure also specifies that concessional loans will be installment-based and periodic in nature. Once sanctioned, the loan ceiling cannot be increased, and only one member per household will be eligible. The concessional loan scheme will remain in place until Ashadh-end 2087 BS (July 2030 AD).
Additionally, the government has clarified that the interest subsidy period will not exceed five years, and BFIs must determine grace periods, installment schedules, and repayment timelines based on loan type, purpose, business nature, expected returns, and risk level.
Officials say the reforms are expected to channel subsidized credit more effectively toward productive sectors, reduce dependency on remittance income, and empower marginalized groups such as women, youth, and Dalit communities. The inclusion of startups and disaster-affected families in the scheme has been welcomed as a step toward inclusive economic recovery and entrepreneurship promotion.
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