Borrowers who have taken working capital loans in excess of the limit have got two more years to repay the amount. On Monday, Nepal Rastra Bank has given time till June 2084 for the payment of such loans in excess of the limit through the revision of guidelines related to current capital loans.

Previously, borrowers who had taken working capital loans exceeding the limit had to repay by June 2082. They have been demanding the amendment saying that such arrangement has upset the borrowers. According to their demand, the National Bank has given two more years. 

According to the new arrangement, it has been arranged that among the loans that have flowed more than the limit set by the current capital loan guidance, the outstanding loan amount should be settled by maintaining equal periodic installments and paying them by the end of June 2084 by determining the payment schedule. However, the previously established loan loss arrangement amount cannot be returned until the loan is regularized. The loan adjustment made in this way will not be considered as rescheduling or restructuring for the purpose of loan classification and loan loss arrangement,' said the National Bank. 

Current capital loan guidelines, 2079 have come into effect from 1st November. Prior to that, current capital loans which were reviewed or renewed for the first time in excess of the limits set by the norms, had a deadline of June 2082 for repayment. According to this, the debtor had to pay 10 percent by 2080 June, 20 percent by June 2080, 20 percent by June 2081, 20 percent by June 2081, and 30 percent by June 2082. Now the last limit of loan payment has been increased to June 2082. 

Experts say that this arrangement will bring relief to both the borrower and the bank. Especially when the economy was failing, borrowers were not able to repay their loans, and banks also had problems in recovering their loans. The new arrangement has given relief to both borrowers and banks. 

The time of implementation of the provisions regarding variances in point 7 of the 'current capital loan guidance, 2079' has also been moved by one year to July 1, 2083. Earlier, it was said that this system will be implemented from July 1, 2082. The Rastra Bank has also provided rescheduling and/or restructuring once for the loans that flowed in the designated sectors (agriculture, energy and micro, domestic, small and medium enterprises) up to 20 million rupees which are in problem due to circumstances.

"In the case of loans in the specified sectors (agriculture, energy and small, domestic, small and medium enterprises) up to 20 million rupees that are in distress, at the request of the borrower, after analyzing the aspects including business plan and cash flow, at least 10 percent of the interest to be paid on the basis of need and justification can be recovered and subject to the following conditions, the loan can be rescheduled or restructured for one time. 

Such rescheduling or restructuring should be done by the end of October 2082 and the rescheduled or restructured loans should be classified in the same category as at the end of December 2081, the National Bank has also given the facility. The National Bank has clarified that the loan loss arrangement made before rescheduling or restructuring cannot be recovered.

Banks and financial institutions have also got an additional one year deadline for the minimum loans to be provided in the directed sectors (agriculture, micro, domestic and small enterprise business, energy and tourism). Earlier, commercial banks had to transfer at least 15 percent of total loans to the agricultural sector till June 2084. Now they have got the facility even if the minimum limit of 15 percent is extended till June 2085. For this, a minimum of 11% by June 2082, 12% by June 2083, 13% by June 2084 and 15% by June 2085 will have to be transferred to the agricultural sector. 

Banks and financial institutions had to disburse at least 15 percent of loans to micro, domestic, small and medium enterprises (including loans of less than 2 crores and directly disbursed poor class loans) until June 2084. Now the National Bank has given one more year for such loans. According to the new system, banks and financial institutions will have to fulfill the mentioned standards by June 2085. 

 Commercial banks like development banks and finance companies have got a deadline of 2085 from Rashtra Bank for the minimum loan flow to be flowed in the directed area. Earlier, in the fields of agriculture, micro, domestic and small enterprise business, energy and tourism, development banks had to provide a minimum of 20 percent of the total loans and deposits and financial institutions of the finance company category had to provide a minimum of 15 percent of loans by the end of June 2084.