Kathmandu. The Ministry of Finance has made the first amendment to the working procedure related to interest subsidy for concessional loans. The procedure has been amended by incorporating new provisions.
Now, in case the loans issued as per the working procedure are renewed, the grant will be available for 5 years from the date of grant issuance.
Likewise, the work procedure has also included a provision requiring the banks and financial institutions to obtain self-declaration from the borrowers regarding whether they have not received the grant from the National Disaster Risk Reduction and Management Authority for the construction of private houses while providing loan to the victims of natural disasters.
Notwithstanding anything contained in the working procedure, if the borrower fails to repay the loan amount that is to be paid in any quarter due to circumstantial reasons, the bank or financial institution can demand interest subsidy for the entire period by ascertaining the utilization of the loan due to circumstantial reasons.
Likewise, in the case of the loans issued as per the working procedure, the provision of loan, interest, grant, loan security and insurance service and subsidy will be provided as per the terms and conditions.
