Kathmandu. About Rs. 72 billion has been applied for refinancing provided by NRB to banks and financial institutions. Banks and financial institutions had collected applications from September 1 to mid-October. During the same period, 44 banks and financial institutions applied for loans worth Rs 72 billion, according to Rastriya Bank.

As per the new refinancing procedure, NRB will provide lump sum to banks and financial institutions up to 70 percent of the total refinancing amount. Banks and financial institutions will disburse the amount to the borrower within the prescribed criteria. Out of the remaining 30 percent, 20 percent is refinanced by NRB. The remaining 10 percent will be provided by the NRB to the MFI lump sum. Customers will have to pay only 3 to 5 percent interest on these loans. Banks and financial institutions are allowed to disburse only Rs 50 million per person.

The current refinancing fund is allowed to flow up to 5 times the maximum refinancing. At present, the refinancing fund has Rs. 42.50 billion. Accordingly, NRB will be able to disburse Rs. 212.50 billion as refinancing. Banks and financial institutions receive 70 percent of this (Rs. 148 billion) in one go. Under 20 percent, NRB spends Rs 42.50 billion on consumer refinancing. The remaining Rs 21.25 billion is received by the MFIs as a lump sum and disburses loans to its customers.

The demand for 20 percent of the amount (Rs. 20.50 billion) disbursed by NRB has reached Rs. 42 billion. Adding the demand for consumer refinancing and lump sum loans, the total demand is Rs 113 billion.

Thus, the highest demand of Rs 18.60 billion has been received from Bagmati Pradesh among the applications received under customer refinancing. Similarly, refinancing of Rs 8.41 billion has been demanded from Lumbini, Rs 5.56 billion from State 1, Rs 5.24 billion from Gandaki, Rs 3.51 billion from State 2, Rs 900 million from Far West and Rs 70 million from Karnali.