“Concessional Loan: Revised Guidelines Implemented with Greater Benefits for Farmers, Women, and Youth”

The recently amended concessional loan procedure has officially come into effect. Nepal Rastra Bank (NRB) has directed banks and financial institutions to implement loan disbursement under the new guidelines. According to NRB, any subsidy amount on interest not covered by the government will now be provided by the central bank itself.

As of the end of Ashad 2082, concessional loans worth Rs. 78.66 billion had been disbursed to 94,920 borrowers. However, more than Rs. 1 billion in outstanding claims have not yet been reimbursed. Of this, Rs. 57.55 billion was disbursed under agriculture and livestock loans, Rs. 20.09 billion under women entrepreneurship loans, and Rs. 1.02 billion under other categories.

The revised procedure increases the loan ceiling across various schemes: agriculture and livestock loans up to Rs. 50 million, women entrepreneurship loans up to Rs. 2.5 million, self-employment loans for returnee migrant workers up to Rs. 2 million, educated youth project loans up to Rs. 2 million, Dalit entrepreneurship loans up to Rs. 2 million, startup loans up to Rs. 2.5 million, boiler replacement loans up to Rs. 2.5 million, and concessional housing loans for disaster victims up to Rs. 500,000.

Additionally, banks are now required to publish details of concessional loan disbursements quarterly on their websites. This reform is expected to support entrepreneurship, modernize traditional skills, promote women-led businesses, and provide relief to disaster-affected households.