Flood, fire victims to get loans at subsidised rates
Jan 12, 2018-Flood and fire victims will also be able to get subsidised loans like earthquake survivors to rebuild their homes. Nepal Rastra Bank (NRB) has launched a scheme under which disaster victims will be able to borrow money at 2 percent interest from banks and financial institutions (BFIs).
The central bank issued a circular on Tuesday announcing that it would provide refinancing facility to BFIs without interest while they have to extend loans to fire and flood victims at 2 percent interest per annum.
Residents of Tehrathum and Bhojpur districts who lost their houses to fire are eligible to get these special loans. “Those building houses in urban areas will get up to Rs2.5 million and those in the suburbs will get up to Rs1.5 million for 10 years,” the central bank said. “If borrowers exceed the limit set by the central bank, BFIs will not get refinancing facility on the excess amount.”
Similarly, borrowers have to comply with the terms and conditions of the concerned financial institution for the portion of the loan not covered by the central bank’s refinancing facility.
NRB has also announced refinancing facility for BFIs extending loans to residents of Saptari district who lost their homes and businesses to the flood. They can get loans of up to Rs1.5 million to rebuild their homes and restart their businesses.
Potential borrowers have to get a certificate from the District Natural Disaster Rescue Committee to qualify for the low-interest loans, according to the central bank. BFIs are required to extend such loans for a minimum of five years and a maximum of 10 years. “If borrowers wish to repay their loans before they mature, BFIs are not allowed to charge any kind of fees,” the circular said.
Published: 12-01-2018 08:34