2 June Kathmandu : The Nepal Rastra Bank has introduced the refinancing work procedure, 2077 which allows up to Rs 1.5 million for refinancing the small and cottage industries. The procedure has been introduced to prop up the small industries and encourage entrepreneurship in the wake of the coronavirus pandemic which has badly dented national economy.
The loan would be provided in three category- small and cottage industries, special and common industries. For the purpose of small and cottage industries, the central bank will provide finance to the bank and financial institutions at 2 percent, while the intermediary will provide loan at 5 percent. Similarly, in case of special industry, NRB provides loan at one percent, while the intermediary bank and financial institutions will provide it to the beneficiaries at three percent. The bank and financial institutions are financed at three percent, while they provide loan at five percent.
The board of directors determines the ceiling for the refinancing. The NRB has shared that each person running small and cottage industry will be provided up to Rs 1.5 million which goes up to Rs 100 million for special loan.
NRB will call for the refinancing giving certain timeline. The customer needs to apply in the related bank branch with necessary documents. Refinancing decision would be taken within a month of application. Every branch of the bank can provide such loan to only five customers.