The Ministry of Finance has disbursed 9.80 billion rupees for interest subsidy on subsidized loans that have been suspended for a long time. The Ministry of Finance released the amount on Saturday.

Banks and financial institutions have not provided new subsidized interest loans due to lack of interest subsidies for a long time, citizens are also having to pay high interest rates. 

"In the annual program of the financial year 2082/83 for the purpose of concessional loan interest subsidy, 9 billion 800 million has been disbursed in accordance with the decision to provide the loan interest subsidy provided in the last seven quarters to the Rashtra Bank through the revision of the allocated program in the second quarter period," said the letter of the Ministry of Finance.

Along with this, since the amount to be paid by the government for interest subsidy is less, there is a possibility that banks and financial institutions will also start providing subsidized loans. More than 10 billion of the government's obligation to pay interest subsidy on subsidized loans remained to be paid.

Banks and financial institutions have not provided subsidized interest rate loans for about two and a half years since the government did not provide the funds for the subsidy. Even in the subsidized loans that were provided earlier, most of the banks are now collecting the full interest (including the subsidy) on the condition that they will return the amount for the interest subsidy after receiving money from the government.

Similarly, the government should pay the insurance fee to the insurance company and the loan protection fee to the deposit and loan protection fund through the National Bank through the National Bank.

last August has modified the procedure of subsidized loan of interest. Now the government will give only 3 percent interest subsidy on subsidized loans. Earlier, 5 percent interest subsidy was given for 6 types of loans under the title of women entrepreneurs and 5 percent for the remaining nine types of loans.