Wednesday 27th May 2020

‘2% Special Discount’ on ‘Interest’ Amid COVID-19 Crisis

The NRB has ordered banks to cut down the interest rates to alleviate the financial burden on borrowers.
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‘2% Special Discount’ on ‘Interest’ Amid COVID-19 Crisis

The Nepali government is striving to implement the best policies and regulations to minimize the socio-economic impacts caused by the coronavirus pandemic.

Lately, the Nepal Rastra Bank (NRB) has directed the banks and financial institutions in the country to provide a 2% discount on the interest rate to the COVID-19 affected entrepreneurs and individuals.

With this, the banks issuing loans from now on should reduce the interest by 2% and count the interest amount of the fourth trimester of the FY 2019/20.

ALSO READ: Nepal to Provide ‘Loans to Returnee Migrants’!

The NRB has also ordered the banks to extend the payment due date of the monthly/trimester installments for months of Baisakh and Jeth and till the end of Ashadh.

According to the NRB instructions, no additional charges or fines can be levied in case of such installments.

Moreover, the BFIs should extend the payment of the principal and interest of all recurrent capital-type short-term loans to be paid during the lockdown period by 60 days.

However, the aforementioned provisions do not apply to:

  • Food processing, sale, and distribution
  • LPG bottling, sale, and distribution
  • Internet service providers
  • Telecom service providers
  • Television service providers
  • Tobacco and alcohol-based industries
  • Hydropower projects in operation

So far, Nepal has reported only 57 coronavirus infection cases. However, the coronavirus pandemic has halted all businesses, tourism activities, Everest Expedition, and international travel, among others.

As of now, the global coronavirus infection cases have raised over 3.22 million and death cases reached 228,270.

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