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Rastra Bank has introduced a special arrangement to help improve the living standards of low and middle income households. It has been arranged that agricultural and commercial loans can be provided up to 10 lakhs for agriculture and small domestic small and medium businesses.
It is mentioned in the monetary policy of the financial year 2082/83 announced by Governor Vishwanath Paudel on Friday that the minimum loan loss will be arranged during the grace period of loans up to 10 lakhs.
According to the policy, arrangements will be made to include loans flowing up to 3 crores in loans flowing to small and medium enterprises and counting them as loans flowing in designated areas. This arrangement mentions in the policy to provide cheap interest rate loans to encourage small agricultural loans.
It is stated in the policy that the provision of loans of different durations and nature to individuals or commercial firms for work related to agricultural business including food crops, livestock and fish farming will be simplified. It is mentioned in the policy that supporting industries for agriculture, production of agricultural tools, information technology, tourism and other areas related to internal production will be added.
'In the case that no interest rate can be determined by adding a premium of more than 2 percentage points to the base rate for loans to small domestic small and medium enterprises, agriculture and indigenous raw material-based industries of up to 2 crores, it will be reviewed by adding areas related to internal production such as supporting industries for agriculture, production of agricultural tools, information technology, tourism,' says the monetary policy, 'This arrangement has been circularized on July 18, 2081 and has been implemented.'
Nepal Agricultural Research The policy also mentions facilitating loans from banks and financial institutions to increase the production of agricultural produce of varieties recommended by the Council (NARC).
According to the monetary policy, 6 trillion 47 billion 85 million of the total loans invested by commercial banks in the middle of May 2082 are in the agricultural sector. This amount is 13.9 percent of the total loan. A total of 1 trillion 32 billion 88 million loans have been invested in agriculture, micro, domestic and small enterprise business, energy and tourism sectors from development banks. This amount is 26.4 percent of the total loan investment.
The monetary policy announced by Nepal Rastra Bank on Friday also said that the production of dry crops will increase. Rashtra Bank estimates that the arrival of monsoon on time this year will have a positive effect on the production of annual crops including rice.
