Kathmandu. Nepal Rastra Bank has received application for refinancing of Rs. 72 billion. Chief of the Department of Banks and Financial Institutions Regulation, Nepal Rastra Bank, Dev Kumar Dhakal said that they have demanded refinancing of Rs 72 billion from 44 banks and financial institutions.

As per the provision made by the refinancing procedure 2077, the NRB, which will provide loan to the affected entrepreneurs, is going to provide the amount through banks and financial institutions. Nepal Rastra Bank has allocated Rs. 148 billion to provide simple refinancing at 5 percent interest rate to the affected entrepreneurs.

NRB has Rs 212 billion for refinancing. Out of the total refinancing amount (42 billion) that is supposed to be given directly to the customer, the customer has so far taken Rs 5.9 billion directly.

NRB has implemented new procedure related to refinancing. The most affected borrowers will get the loan from the corona prescribed by the banks for a period of up to one year and for a maximum period of six months as it is designated as a medium and least affected area.

Nepal Rastra Bank has brought a new procedure by classifying the covid affected industrialists into three categories. The procedure provides that such entrepreneurs can get interest from 3 to 5 percent. Banks will be able to charge 5 percent interest from borrowers on refinancing, 3 percent interest on special refinancing and up to 5 percent interest on general refinancing.

Limits of refinancing facility:

The maximum limit of refinancing per customer, which will be provided to the licensed institution by the bank, will be 50 million. The lump sum refinance provided in this way will not be more than 70 percent of the total refinancing amount.

The maximum limit of refinancing provided by the bank after customer evaluation will be up to Rs. 200 million per customer. Thus, the refinancing amount provided according to the customer will not be more than 20 percent of the total refinancing amount.

The refinancing amount provided by the bank to the licensed 'D' class MFIs shall not exceed 10 percent of the total refinancing amount.

Non-refinancing loans:

Overdraft loans, home and land loans, car loans, household goods loans, margin loans, gold and silver loans, social loans and loans taken in personal name or for personal consumption will be considered ineligible for refinancing.

Other subsidized loans, including interest subsidized concessional loans, loans to industries with an average return on equity of 20 percent or more in the last financial year, tobacco, tobacco and liquor and liquor industries including cigarettes, bindi, cigars, tobacco, khaini, gutkha कर्जा Loans to the business and other loans specified by the bank from time to time will be ineligible for refinancing.