Kathmandu. The Finance Ministry has decided to release Rs 9.80 billion to Nepal Rastra Bank (NRB) for the payment of interest subsidy on concessional loans. According to Tanka Prasad Pandey, spokesperson of the Ministry of Finance, the ministry has decided to release the amount allocated for the payment of the interest on the concessional loan of the second quarter of the current fiscal year in the first quarter.

“As per the Integrated Procedures on Interest Subsidy for Concessional Loans, 2082, the amount allocated in the second quarter of the fiscal year 2082/83 has been changed to the first quarter through program amendment and the interest subsidy of the loans provided in the last seven quarters will be provided to the Nepal Rastra Bank (NRB),” reads a press release issued by the Ministry of Finance ।

Nepal Rastra Bank (NRB) has not been able to get interest subsidy from the government for a long time. With the release of this amount, it is expected that it will be easier to expand the loan. According to the integrated working procedure on interest subsidy, agriculture and livestock loan can be provided up to Rs 50 million, women entrepreneurial loan and startup enterprise loan up to Rs 2.5 million.

Similarly, the government has been providing concessional loan equivalent to Rs 2 million for the project of foreign employment returnee youths and educated youths. As per the provision, a loan equivalent to Rs 5 lakh can be provided to the victims of natural disasters as private house construction loan.

The government has been providing subsidy for the interest payment of such concessional loans provided by banks and financial institutions.