Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has provided loan rescheduling facility to industrialists affected by the Genji agitation.
The central bank has added this facility by amending the integrated directive issued to banks and financial institutions. “At the request of the borrower, the licensed institution may reschedule or restructure the loan to the industries, trades, businesses, establishments and other borrowers directly affected by the extraordinary situation created during the Genji agitation,” the directive reads.
As per the directive, such re-tabulation or restructuring has to be done by mid-January 2082. The loans retabulated or restructured as per the above will have to be classified in the same category as the one in which they were at the end of Ashad 2082 BS and the loan loss provision will have to be maintained.
Likewise, the NRB has also allowed the borrowers who have forward or backward linkage to the borrowers directly affected by the abnormal situation created during the Zenji movement to reschedule or restructure the loan to the borrowers who have a forward or backward linkage by determining the impact of the loan by the concerned licensed institution and recovering a minimum of 5 percent of the interest to be paid by the borrower. Such rescheduling and÷or restructuring should be done by midJanuary 2082 at the request of the borrower. The loans retabulated or restructured as per the above will have to be classified in the same category as the one in which they were at the end of Ashad 2082 BS and the loan loss provision will have to be maintained.
Similarly, the licensed institution may reschedule or restructure the loan on the request of the borrower for the loans that are affected due to the disruption seen in the recent days due to natural disaster at Rasuwa and Tatopani customs checkpoints, subject to the terms and conditions given by ascertaining the impact on the business. Such re-tabulation or restructuring has to be done by mid-January 2082. The loans retabulated or restructured as per the above will have to be classified in the same category as the one in which they were in the end of Ashad 2082 and the credit loss provision will have to be maintained.
As per the directive, the licensed institution will have to maintain the interest rate of the loan by adding a maximum premium of 0.5 percentage points to its base rate for the period it takes to resume business while issuing loans to revive and operate industries directly affected by the abnormal situation created during the Genji movement.
If the self-capital ratio of the loan issued in this way is more than 80:20, the provision to classify it in the micro-monitoring category has been given a one-year exemption.
Provision for Vehicle Loans
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The licensed institution shall maintain a maximum of 60 percent of the loan value of the vehicle for the following vehicles while issuing loan for the purchase of motor vehicles:
All purpose electric vehicles and private personal vehicles. However, the loan-to-value ratio can be maintained up to 80 percent if loans are provided to the industries and commercial establishments directly affected by the Genji agitation to replace the vehicles and transport vehicles being used commercially.
(a) In order to ensure the employment of the employees directly affected by the extraordinary situation created during the Genji agitation, if the employer institution or establishment requests for a loan to provide remuneration through the banking system by bringing a payroll protection scheme, the licensed institution shall provide the loan by adding a premium of only 0.5 percentage points to the base rate while issuing the loan. You have to do it.
(b) Such credit shall be issued for one year or the period to come into operation of the Association, whichever is less. It will have to be issued only for that period.
(c) The Government of Nepal shall grant 2 percent interest rate for six months on the interest rate so issued.
(d) Point No. (c) The grant as referred to shall be made available to the borrower after receipt from the Government of Nepal.
(e) The concerned employer institution shall have to make an application for such credit within mid-January 2082.
Likewise, an industry that employs at least 100 women, exports a minimum of 25 percent value addition and exports at least 25 percent of its total production, can maintain the interest rate by adding a maximum of 1 percent premium on its base rate.
