Corona affected business's 2 percent discount on loan  interest

Nepal Rastra Bank has brought relief package for the businessmen affected by Corona. NRB has made an arrangement to give 2 percent discount in interest to entrepreneurs and allow banks and financial institutions to invest Rs 50 billion at a time.

NRB has issued a circular to banks and financial institutions instructing them to reduce the interest rate by 2 percent for businessmen affected by corona.

Up to ten percent of the loan can be given additional loan, interest rate 2 percent

Banks and financial institutions have been able to lend up to 10 percent more when giving working capital loans to Corona-affected businesses. This arrangement will be applicable for loans of hotel, restaurant, travel, trekking, aviation, entertainment industry, hospital poultry business.

Similarly, NRB has stated that no penalty will be levied even if the installments for April and May are paid by mid-July.

Entrepreneurs taking a working capital loan will have to repay it within 60 days of the liquidation.

Loan interest rate cannot be increased for 6 months

NRB has instructed the banks and financial institutions to keep the interest rate stable by providing relief to the debtors who are facing problems due to corona and lock-down.

NRB has issued a circular stating that the interest rate of the loan should be fixed and published and the published interest rate should not be increased for six months. However, the bank will be able to reduce the interest rate and premium published six months in advance.

For small borrowers borrowing up to Rs 1.5 million, refinancing will be provided to NRB at 2 percent and banks will not be allowed to charge more than 5 percent interest rate on such loans.