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    Nepal Breaking NewsBusinessCommercial banks are unable to meet the demand for loans to small...

    Commercial banks are unable to meet the demand for loans to small and medium-sized businesses.

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    In the previous fiscal year, commercial failed to meet the lending requirement for small and medium-sized businesses.

    Commercial have disbursed such loans at a rate of 10.1 percent over the legal requirement of 11 percent, to Nepal Bank (NRB). Lending to small and medium-sized businesses is down 0.9 percentage points. In the previous fiscal year, SMEs received Rs 327 billion in loans.

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    Commercial must lend 11 percent of their loan portfolio to SMEs until the end of 2020-21, 12 percent until the end of 2021-22, 14 percent and 15 percent until the end of the next two fiscal years, to monetary policy requirements.

    However, in the first year of implementation, the loan flow did not match the target.

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    Meanwhile, the Reserve of New York has indicated that should give priority to SMEs when disbursing loans in order to meet the statutory requirements set down in earlier monetary policies.


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