Opportunity to Refinance the Corona Affected Area - Nepal Rastra Bank (NRB):
The government has provided the opportunity to refinance the coronavirus (Covid-19) affected people at a concessional interest rate. The government will only provide such opportunities to the areas most affected and moderately affected by the Corona epidemic. Nepal Rastra Bank (NRB) has issued a notice on Monday calling on the participants to apply for such loans.
NRB has said that applications for refinancing can be submitted from Monday 1st Bhadra 2077 (17th August 2020) to 14th Ashoj 2077 (30 September 2020).
Earlier, tourism entrepreneurs, small, cottage and small scale entrepreneurs and other service organizations and manufacturing industrialists said that they have been hit hard by the Corona epidemic and demanded to arrange concessional refinancing. Now, NRB has provided such an opportunity for refinancing to the worst affected and moderately affected areas.
NRB has stated that applications can be made for refinancing, general refinancing, and special refinancing of micro, home, and small enterprises to be given in one go to continue the business in various sectors affected by the Corona effect.
Nepal Rastra Bank spokesperson Dr. Gunakar Bhatta said that this is the first time that the NRB has called for such a proposal to provide refinancing after the Corona-affected people had prepared the procedure as per the earlier demand with the government. He said it was a great opportunity for those who could not run their business because of Corona.
According to the NRB, the applicant has to apply for such refinancing along with the decision of the board of directors of the licensed institution, the address of the branch office and the date of operation, and the total refinancing amount demanded by the institution up to a maximum of 25 percent of the institutional capital.
Similarly, the repayment period of the loan selected for the application should be at least one year left and in case of a borrower who has availed the loan through more than one bank and the financial institution, the applicant should ensure that only one bank has applied through the financial institution. At least 70 percent of the total amount applied for refinancing should be demanded under the micro, home, and small enterprise refinancing, minimum 5 customers and borrowers from each branch should be included while selecting a loan for application, the capital ratio of the submitting institution should be reached as specified by the concerned bank.
This is the first time that the NRB has called for such a proposal to provide refinancing after the Corona-affected people prepared the procedure as per the earlier demand with the government. The National Bank of Nepal (NBN) on Monday issued a notice calling for applications for refinancing to be provided to commercial banks, development banks, and finance companies. Accordingly, NRB will provide refinancing, general refinancing, and special refinancing for micro, domestic, and small enterprises in one go. Banks and financial institutions will have to apply by the 14th of Ashoj 2077 (30 September 2020).
NRB will provide loans on the security of good loans provided by banks and financial institutions to provide services to the participants of such refinancing. Refinancing of micro, home, and small enterprises up to Rs. 1.5 million per customer, special and general refinancing up to Rs. 50 million will be provided to banks and financial institutions. The NRB has stated that the interest rate on such refinancing will be at least 3 percent and at most 5 percent.
NRB has listed tourism, aviation, hospitals, and others as the most affected areas. Similarly, trekking, travel agency, mountaineering, yachting, camping, tour operator, healing center, casino, massage spa, etc. can apply for this opportunity as highly affected.
Similarly, hotels, tourist accommodation, motels, rural tourism, homestays, resorts and restaurants, environmental tourism, wildlife reserves, adventure tourism, skiing, gliding, water rafting, hot air ballooning, canyoning, parasailing, horse riding, elephant riding, bungee jumping, There are mountaineering and observation. Similarly, golf courses, polo, pony trekking, trekking, mountain flying, cable car, air and tourist transport, amusement, amusement park, recreation-related business, party palace, movie production, distribution, cinema hall have also been included in the worst affected area.
Similarly, lost or unpaid workers, laborers, or employees (at home or abroad) are basically affected by decaying, decaying vegetables, fruits, flowers, fish, meat, grains, milk and dairy products, production, and sale of eggs. Are Poultry business, livestock, bee and fishery business, readymade garments, handicraft and handicraft business, foreign employment service providers, educational counseling service providers have also been included in the worst affected areas.
Similarly, NRB has listed the industrialists related to the production and sale of consumables such as plastics, steel, tires, leather, metal products, home appliances, and other consumer goods in the moderately affected areas. Refinancing will be provided to private and residential schools, higher education and secondary schools, colleges and universities, technical schools, pre-schools, child care related to the middle class affected.
Similarly, social and personal service activities including passenger vehicles, beauty parlors, salons, cosmetic surgeries, consulting services or business including legal, accounting, engineering, hospitals, clinics, nursing homes, diagnostic centers, health centers or fitness centers,
Refinancing Areas:
Highly affected area
1. Tourism
(A) Trekking, travel agency, mountaineering, yachting, camping, tour operator, healing center, casino, massage spa, etc.
(B) Hotels, tourist accommodation, motels, rural tourism, homestays, resorts and restaurants, environmental tourism, wildlife reserves.
(C) Adventure tourism including skiing, gliding, water rafting, hot air ballooning, canoeing, parasailing, horse riding, elephant riding, bungee jumping, mountaineering, and observation.
(D) Golf Course, Polo, Pony Trekking, Hiking, Mountain Flight Operation, Cable Car
2. Airline and tourist transport
3. Amusement, amusement parks, recreation business, party palaces
4. Film production, distribution, cinema solution
5. Workers, workers or employees who have lost their jobs or are in trouble (at home or abroad)
6. Production and sale of basically perishable goods, such as vegetables, fruits, flowers, fish, meat, grains, milk and milk products, eggs, etc.
7. Poultry business
8. Livestock, bee and fishery business
9. Readymade garments, handicrafts, and skill-based business
10. Foreign Employment Service Provider, Educational Counseling Service Provider
Moderately affected area:
1. Industry business related to production and sale of consumables such as plastic, iron and steel, tires, leather, metal products, home appliances, etc.
2. Private and residential schools, higher education and secondary schools, colleges and universities, technical schools, pre-schools, child care
3. Passenger site traffic
4. Social and personal service activities including a beauty parlor, salon, cosmetic surgery
5. Legal, accounting, engineering, and other consulting services or business
6. Hospital, Clinic, Nursing Home, Diagnostic Center
7. Health center or fitness center
8. Production, processing and sale distribution of stored goods (except food)
9. Forest and mineral industries
10. Construction business
11. Drug production
12. Printing, publishing and communication house
13. Hydropower under construction and renewable energy
14 Business-related to stone, clay and glass production
Notice Published Date: 2077-05-01 (17th August 2020)
Nepal Rastra Bank Notice:
