November 2, 2020 | Investopaper
Business men have demanded refinancing of Rs 113 billion saying that their business has been affected due to Covid-19. They have demanded refinancing of Rs 72 billion through 44 banks and financial institutions under lump sum micro, home and small enterprise loans and general and special loans. Similarly, more than 200 people have demanded Rs 41 billion under loans up to a maximum of Rs 200 million per customer.
You May Also Like: What Is Refinancing? How One Can Receive Refinancing Facility In Nepal?
NRB had demanded a one-time application from banks and financial institutions for refinancing till Ashwin end. Banks and financial institutions can apply directly to NRB for refinancing to single customers. There is a provision for refinancing up to 70 percent of the total amount of the fund and up to 20 percent from the amount of the fund according to the customer. 10 percent of the fund will flow from microfinance companies. It has not been demanded at present. Hoteliers alone have demanded refinancing of Rs 8.70 billion, according to Nepal Rastra Bank. The highest demand of Rs 18 billion refinancing loan is from Bagmati state.
At present, the refinancing fund has only Rs 42.50 billion. NRB will be able to invest up to five times the amount in the refinancing fund. The size of the fund, which is currently Rs. 42.50 billion, can be increased to Rs. 212 billion.
For micro, home and small enterprise refinancing, general refinancing and special refinancing, banks will receive loan from NRB at 2, 3 and 1 percent interest rates respectively. Banks and financial institutions should provide such loans to the customers at 5, 5 and 3 percent respectively. As single customer loans are covered under general refinancing, interest rates apply accordingly.
Read Related Contents:
NRB Introduces Refinancing Procedure, Refinancing Facility Up To Rs 1.5 million