Kathmandu, May 21
Nepal Rastra Bank has decided to reduce the maximum limit of refinancing loans for businesses within a few days to ensure that small and medium enterprises have access to the subsidised facility of the central bank.
Gunakar Bhatta, spokesperson for NRB, said the central bank would soon reduce the maximum limit of such loans issued to businesses and simplify procedures to acquire loans primarily to ensure that more businesses have access to these loans, specially SMEs.
Though NRB is providing loans under its refinancing facility, only large businesses had been accessing such facilities from the central bank.
Currently, businesses can take refinancing loans up to Rs 500 million through refinancing facility of the central bank at an interest rate of up to five per cent. However, since the number of loan-seekers for the government’s refinancing facility is increasing and is expected to further rise due to the impact of COVID-19, the central bank is working on reducing the limit for refinancing loans to Rs 100 million.
Earlier, Governor Maha Prasad Adhikari had publicly said the maximum limit of refinancing loans for businesses would be brought down to around Rs 100 milli
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