Apr 1, 2017- Those seeking bank credit to engage in commercial agriculture will now get a waiver of at least 50 percent on interest rate, as the government has raised interest subsidy on agricultural loans to 5 percent.
The Interest Subsidy on Commercial Agricultural Loan Guideline introduced by the Nepal Rastra Bank (NRB) on Friday revised the interest subsidy on commercial agricultural loans from existing 4 percent as per the announcement made through the fiscal policy. This new guideline will replace the Guideline on Interest Subsidy on Commercial Agricultural Loans for Youths.
As per the guideline, banks and financial institutions extending such loans should not add more than 5 percent on top of the interest subsidy while fixing the interest rate. This basically means interest on commercial agricultural loans should not exceed 10 percent per annum.
“The new provisions will come into effect immediately,” said NRB Spokesperson Narayan Prasad Paudel.
