Kathmandu,

Nepal Rastra Bank has brought refinancing procedure, 2077 with the provision of refinancing up to Rs. 1.5 million for small, micro and small enterprises.

The central bank has come up with the procedure with the aim of effectively reviving the enterprise business by minimizing the impact of the corona virus on the country's economy.

The bank has made arrangements to take three types of refinancing, small, home and small enterprises, special and general. For small, home and small enterprises, the central bank will provide loans to banks and financial institutions at an interest rate of two percent.

Banks and financial institutions will be able to disburse such loans at five percent interest. NRB will provide one percent interest on such special refinancing. Banks and financial institutions will be able to charge three percent interest on that amount. NRB will provide three percent interest rate on ordinary refinancing. Banks and financial institutions will be able to invest such amount with interest up to five percent.

The limit of the refinancing fund will be as determined by the Board of Directors. According to the Central Bank, refinancing of micro, home and small enterprises up to Rs. 1.5 million per customer, special refinancing up to Rs.

As per the instructions of NRB, banks and financial institutions will call for loans on time. The customer will have to apply to the concerned branch of the bank along with the prescribed documents. The refinancing decision will be made within one month of receiving the application. Only five branches of the bank will be able to avail such loan facility.