Kathmandu. The government has amended the procedure related to concessional loans. The government has amended the working procedure with the objective of providing subsidy amount on interest, insurance fee or security fee on concessional loans provided for the development of entrepreneurship and construction of private houses for the victims of natural disasters by modernizing and promoting traditional skills and professions.

The government has approved a new procedure to provide interest subvention of up to 3 percent on loans under eight different heads from 5 to 6 percent on loans in 10 sectors at present. Similarly, the government has abolished the working procedure of providing 6 percent subsidy on women entrepreneurship loans and 2 percent on commercial agriculture and livestock loans above Rs 50 million.

According to the Ministry of Finance, after the revised procedure, the concessional loans provided by banks and financial institutions have been facilitated and the limit of some loans has also been increased drastically. Now banks and financial institutions will be able to provide loans up to Rs 50 million under agriculture and livestock loans. Earlier, commercial agriculture was given only, but now it is being given to all types. Similarly, women entrepreneurs’ loans have been increased to Rs 2.5 million by amending the procedure. If the youth returning from foreign employment want to become self-employed, the government will now provide a loan of up to Rs 2 million.

The educated youth project loan has been increased to Rs 2 million, while the Dalit community Bhagat Sarbajit Enterprise Development Loan has also been increased to Rs 2 million. Similarly, as per the revised procedure, the limit of startup enterprise loan has been increased to Rs 2.5 million. The government has set a maximum limit of Rs 2.5 million for boiler replacement loans in industries. The private housing loan for natural disaster victims has been fixed at Rs 500,000. Earlier, such a provision had not been made.

According to the procedure, the concessional loan will be periodic in nature to be paid in installments. The limit of concessional loans once approved cannot be increased again. Concessional loans will not be given to more than one member of a family. The concessional loan will be provided by mid-July 2087 BS.