April 29 : Those borrowers hit hard by the COVID-19 induced national lockdown will enjoy two percent discount on the interest rate. Such borrowers include the hotels, restaurants, resorts, travel and trekking agencies, airline companies, small and medium enterprises, hospitals, poultry firms commercial vehicles and export oriented industries.
The Nepal Rastra Bank has directed the banks and financial institutions (BFIs) to lower the interest rate set for the end of Chaitra by 2 percentage points and count the interest amount of the foruth trimester of the fiscal year 2019/2020.
The BFIs are also required to float working capital loans to the above-mentioned debtors. Moreover, if any of them is regularly paying both principle and interest to the concerned lending institution till the enforcement of the lockdown on March 24, it may get extra such loans that are up to 10 percent of the set limits.
However, the borrowers belonging to the sectors like food processing, trading, LP gas, internet, television, telecommunications, tobacco, liquor etc will not be entitled to these monetary facilities.
Likewise, NRB has directed BFIs to make provisions for extending the time for payment of the monthly/trimester installments to be collected in the months of Baisakh and Jestha till the end of the coming month of Asadh. The NRB directive states that no additional charges or fines can be levied in the case of such instalments. The central bank has stated that the timeline for payment of the principal and interest of short-term loans of all recurrent capital-type to be paid during the lockdown period could be extended by 60 days.
