Kathmandu: The government has released Rs 9.8 billion for interest subsidy on concessional loans. The Ministry of Finance has stated that an amount of Rs 9 billion 800 million has been released for the current fiscal year in accordance with the Integrated Procedure on Interest Subsidy for Concessional Loans, 2025.
According to National News Agency Nepal, a ministerial decision has been made to provide reimbursement to the Nepal Rastra Bank for the interest subsidy on loans provided during the past seven quarters. This allocation is intended for the second quarter period in the approved annual programme of the current fiscal year, focusing on subsidized loan interest through programme amendments, maintaining it as set in the first quarter.
This information was stated in a press release issued by Joint-Secretary at the Ministry of Finance and spokesperson Tanka Prasad Pandey. The Nepal Rastra Bank had not received interest subsidies on concessional loans disbursed from banks and financial institutions for a long time. With the disbursement of this amount, it is estimated that it will be easier to expand the loans.
The integrated procedure on interest subsidies for concessional loans includes provisions for agricultural and livestock loans up to Rs 50 million, and women’s entrepreneurship loans and startup enterprise loans up to Rs 2.5 million. Similarly, concessional loans equivalent to Rs 2 million are made available to the foreign employment-returnee youths and educated youth project.
Additionally, there is a provision to provide a loan of up to Rs 500 thousand for the construction of private housing for victims of natural disasters. The government has been providing grants for the interest payments on such concessional loans offered by banks and financial institutions.