Kathmandu. The government has amended the Unified Procedure on Interest Subsidy for Concessional Loans, 2075 BS. The government has amended the procedure for the third time and made a new arrangement of giving loan up to Rs. 500,000 in youth self-employment loan and also increased the credit limit. The government has also reduced the subsidy for loan security and insurance fees. 

The cabinet meeting held on September 26 approved the procedure. Spokesperson of the Ministry of Finance Rameshwar Dangal said that the amendment was made for the third time by the Council of Ministers. "I have to understand the amended law, I understand," he said. The government has doubled the limit of loans provided for commercial agriculture and livestock loans by conducting procedures. An arrangement has been made to get loan up to Rs. 100 million by amending the integrated procedure related to interest subsidy for concessional loan. Earlier, the limit for agriculture and livestock loans was Rs 50 million.

The revised procedure has reduced the interest subsidy on loans to women entrepreneurs by one percentage point to five percent. Earlier, an interest subsidy of up to 6 percent was provided. As per the amended arrangement, the concerned banks and financial institutions will have to bear 50 percent of the loan security while the remaining 50 percent fee will be reimbursed by the concerned banks and financial institutions through the grant repayment account in Nepal Rastra Bank.

The arrangement regarding payment of insurance fee of the revised business has also been modified. As per the revised arrangement, 50 percent of the insurance fee has to be borne by the entrepreneurs and the remaining amount will be received from the grant-in-aid account in the National Bank. The company will receive the grant amount through the Insurance Committee. Any person must have at least 7 days of enterprise or business development training from government agencies including Home and Small Industries Office, Committee, Skill Development Training Center, Technical Education and Vocational Training Council. That is, a new provision has been made to prove that skill development training has been taken from such institution after the loan is approved.

In addition, provision has been made in the revised working procedure that the banks and financial institutions concerned have to submit the loan details to Nepal Rastra Bank on monthly basis. Banks and financial institutions shall submit such details to NRB within 7 days of the end of each month. According to the new arrangement, the revised procedure has also made provision for other members of the group not to be allowed to take such loan after an institution within the group has taken a soft loan for institutional borrowers.