The government has paid about 5.5 billion rupees to Nepal Rastra Bank for interest subsidy. The Ministry of Finance has now paid 5.5 billion rupees out of the government's obligation to pay interest subsidy on subsidized loans.

According to the instructions of the government, banks and financial institutions have been providing 10 types of low-interest loans so that they can get the interest subsidy money. But for the last two and a half years, the government did not give the amount for the interest subsidy.

Banks have stopped disbursement of the loan as the government did not pay the amount for the interest subsidy. At the same time, last week, the Ministry of Finance paid about 5.5 billion rupees out of the arrears. Nepal Rastra Bank has accepted that out of the arrears to be paid by the Ministry of Finance for interest subsidy, which has increased from 3 billion in the last fiscal year to 5.5 billion and now 8.5 billion.

'Until now, all the amount for the interest subsidy up to July 2080 has arrived. Now about 13 billion rupees have to be paid for all the months of the last financial year and the current financial year till now," said Guru Prasad Paudel, Head of the Regulation Department of Nepal Rastra Bank. "The remaining amount will also come gradually Poudel also said. 

According to the Rashtra Bank, even now, about 13 billion rupiah is yet to be paid by the government for the interest subsidy. Banks and financial institutions have not provided subsidized interest loans for the last one and a half years. Even in the subsidized loans that were provided earlier, most of the banks are now collecting the entire interest (including the subsidy) on the condition that they will return the amount for the interest subsidy after receiving money from the government.

Currently, not all banks and financial institutions provide subsidized interest loans to new borrowers. Therefore, since the government has not yet paid about 13 billion for a period of more than one and a half years, banks and financial institutions have stopped providing new concessional loans. A banker said that there is no possibility of disbursing new loans under this program until the remaining amount is paid.

'The money for the interest subsidy has not come from the government, so now you have to pay the full interest, the bank is charging the full interest because you will get the scholarship after the money comes from the government,' said a borrower who took a subsidized loan, 'We are paying the full interest every month, but the subsidy The amount will not be settled. In the case of interest subsidy loans, the government will pay insurance fees to banks and financial institutions and loan protection fees to deposit and loan protection funds. should be given. 

The government has formally launched the interest subsidy concession program since 2075 with the objectives of increasing production, promoting internal employment, and developing entrepreneurship in the country. 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, the National Bank issued instructions to banks and financial institutions for the implementation of the procedure 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.