Kathmandu. Nepal Rastra Bank (NRB) has changed the concessional refinancing arrangements for the Kovid-19 epidemic. The interest rate on refinancing has gone up from 5 percent to 7 percent.

NRB has raised the interest rate on refinancing of small, home and small enterprises and general refinancing to 7 percent by issuing the fourth amendment of the refinancing procedure, 2077 BS. NRB will provide such loan to the banks at 4 percent. Banks and financial institutions will be allowed to charge only 5 percent interest rate on special refinancing. NRB will provide such special loan to the banks at 2 percent.

According to NRB, the lump sum refinancing period will be one year at most and such loan will not be renewed. The maximum refinancing limit per customer will be 50 million. The lump sum refinancing amount should not be more than 70 percent of the total refinancing amount.

The maximum limit of refinancing will be up to Rs. 200 million provided by the bank according to the customer. However, refinancing of up to Rs. 500 million per debt can be provided to health care providers, hospitals or industries for setting up liquid oxygen plants and establishing vaccine manufacturing industries recognized by the Government of Nepal for the treatment of epidemic diseases. Thus, the refinancing amount provided by the customer will not be more than 20 percent of the total refinancing amount.