Nepal Rastra Bank has reduced the maximum limit of refinancing loans that businesses can take from refinancing facility through banks and financial institutions to Rs 50 million per individual/business.
Releasing the Refinancing Guidelines yesterday, the central bank lowered this facility to businesses/ individuals from Rs 500 million earlier to ensure that more businesses have access to the subsidised loan facility to cope with the impact of coronavirus pandemic. This means that businesses/individuals can now take up to Rs 50 million refinancing loans from BFIs at low interest rate of up to five per cent.
Initially, NRB had prepared a draft of the Refinancing Guidelines and brought down the limit of refinancing loan for individual/businesses to Rs 100 million. However, the central bank has now further reduced the limit to Rs 50 million to ensure access to maximum number of businesses/people to such loans. “The provision that compels every bank branch to release at least five subsidised loans and bring down the limit of such loan to borrowers will certainly help more borrowers to access the refinancing loan facility,” said Gunakar Bhatta, spokesperson for NRB....
