Since two years, citizens have not received subsidized interest loans from banks and financial institutions. The program brought by the government for the purpose of increasing production, promotion of internal employment, development of entrepreneurship, etc., has not been deprived of the citizens' facilities due to the closure or expiry of the period.

Banks have stopped the loan disbursement when the government (Ministry of Finance) did not pay the amount for the interest subsidy. Currently, about 14 billion rupees due by the government for the interest subsidy has yet to be paid. Therefore, banks and financial institutions have not provided subsidized interest loans to new borrowers. 

On the contrary, they are charging full interest (including the government subsidy) from the borrowers who have taken subsidized loans. "The money for the interest subsidy has not come from the government, so now you have to pay the full interest, the bank is taking the full interest because you will get the scholarship after the money comes from the government," said a borrower who took a subsidized loan. No.' 

However, Nepal Rastra Bank Regulation Department Head Guru Prasad Paudel said that they are taking initiatives with the Ministry of Finance for the payment of interest subsidy. Those who availed the loan are confused because of the lack of money from the government for a long time, and the work of getting new customers to participate in this facility has also been blocked for a long time until the investigation is completed.

It is necessary to restart it," he said, "For this, the National Bank is coordinating with the National Bank. According to the information received, the amount will be received soon.

The government has not paid the interest subsidy money to the banks for the last two years (from October 2079 to date). Even though the payment of grant money was stopped, the bank did not stop providing subsidized loans saying that it would come later in the first month. As the payment arrears increased in the last few months, they have stopped providing new concessional loans and are also collecting full interest from the old borrowers.

The bankers have said that currently, the banks are not providing subsidized interest loans because the government has not received the money for the interest subsidy and there are no instructions from the regulatory body that must provide loans.

Banks are providing small loans at low interest rates by making their own products according to their resources. The demand and utility of those loans are also good,' said a chief executive officer of a commercial bank, 'but the banks have not shown enthusiasm to provide the loans.' The official admitted that he was charging full interest (without discount) even from overdue customers. "After the money comes from the government, the money for the interest subsidy is returned to the customer," said the official, "even if it doesn't come, the bank has no problem." "In the last financial year, only 3 billion was paid, a study conducted in the meantime raised some questions regarding the utilization of subsidized loans, so the payment was pending," he said, "We have talked to the National Bank about this, and some amount will be paid within a day or two." 

Finance Secretary Ghimire said that the National Bank has also been asked to suggest some changes in the interest subsidy procedure in the current context. "Regarding the usefulness of subsidized loans, the National Bank should look at it, the bank and the borrower should be equally responsible," he added.

In interest subsidized loans, the government should pay the insurance fee to the insurance company and the loan protection fee to the deposit and loan protection fund to the banks and financial institutions through the Rashtra Bank. 3 billion was paid last financial year for those who were stopped from October 2079. According to Rashtra Bank sources, about 14 billion rupees are left since then. 

The government has formally launched the interest subsidy concession program since 2075 with the objectives of increasing production in the country, promoting internal employment, and developing entrepreneurship. In order to increase production, create jobs and develop entrepreneurship for building a productive economy, the Government of Nepal issued the Integrated Procedure 2075 regarding interest subsidy for subsidized loans. 

According to the same procedure, on October 20, 2075, Rastra Bank issued instructions to banks and financial institutions for the implementation of procedures related to subsidized loans. Initially this loan was voluntary. When the banks and financial institutions refused to pay, the National Bank decided to make the payment mandatory by specifying the number.

initially provided interest subsidies for seven types of loans, including agriculture and livestock, educated youth self-employment, youth projects returning from abroad, women entrepreneurs, Dalit community business development, higher and technical and vocational education and private housing construction loans for earthquake victims. Of these, agricultural loans are the oldest. 

The government has allocated the budget for interest subsidized concessional loan program in such a way that it is not enough to pay the old arrears. The government will have to pay about 14 billion rupees to the banks and financial institutions for the interest subsidy for 6 months of the previous financial year and the last financial year and till now this year. But only 11 billion rupees have been allocated for this program in the next financial year. Under

programme, the government provides interest subsidy on 10 types of loans. There is a provision of 6 percent interest subsidy on women entrepreneurship loans and 5 percent on the remaining nine types of loans. 

1 trillion 13 billion 36 billion subsidized loans to 1 lakh 14 thousand 899 borrowers till November 2081 (still to be raised). Out of this, 78 billion 74 crore loans were given to 43 thousand 691 borrowers under agriculture and livestock business loans.

In the same period, 69 thousand 336 women entrepreneurs received 33 billion 130 million loans under women entrepreneurial loans. Rashtra Bank's data shows that the rest of the loan under other subsidized loans is in investment.  Many questions have also been raised regarding the use of

concessional loans. For this reason, the program to be evaluated to find out the situation of credit utilization was mentioned in the budget and monetary policy of the last financial year.