Central bank mulls bringing down loan interest to single digit


  • Laxmi Sunrise Bank Ad
  • Prabhu Bank Limited (PRVU)
Central bank mulls bringing down loan interest to single digit

The Nepal Rastra Bank (NRB) is formulating the Monetary Policy for 2020-21 with due focus on bringing down the interest rate and restructuring loans.

As per NRB sources, different measures are being introduced through the Monetary Policy to bring interest rate on loan to single digit, that is, around nine per cent. Similarly, the Monetary Policy is expected to restructure both interest on loan throughout the lockdown period and also restructure the loan itself.

 

“The Monetary Policy will primarily focus on addressing interest rate and loan with acknowledgement that businesses and the economy today has been hit hard by the COVID-19,” informed an NRB source seeking anonymity.

Though NRB has not finalised the date for unveiling the Monetary Policy for the upcoming fiscal year, it will be brought within this month.

Among other stakeholders, the business community is eagerly waiting for the Monetary Policy and wants the NRB to address their concerns citing that the budget could only partially address their recommendations.

“Along with restructuring loan and interest rate payment period for businesses that have been affected by the current crisis, the Monetary Policy will also facilitate in bringing down interest rate on loan, which is the major demand of the business community today,” said the NRB official. Along with this, the Monetary Policy will also introduce few measures to effectively implement the refinancing loan facility of the central bank. ...

Read More
  • MBL