By A Staff Reporter
Kathmandu, Jan. 13: Nepal Rastra Bank (NRB) has sought applications from the D-class microfinance institutions for refinancing.
NRB issued a notice on Monday seeking applications for refinancing.
According to the notice, microfinance institutions will be able to apply for the refinancing facilities till January 25.
NRB has also mentioned that various rules have to be followed while applying for the facilities.
It is mentioned that microfinance companies can apply for refinancing up to 65 per cent of their capital, the ratio of capital in the previous quarter should also be as prescribed by NRB.
Paid up capital should be as per capital plan, board of directors and Chief Executive Officer (CEO) should not be in action within last three years, read the notice.
Similarly, only the institutions which have not disbursed loan outside its jurisdiction will be allowed to apply while an institution which has disbursed loan outside its jurisdiction will not be allowed to apply.
Institutions that have not been subjected to any action including speedy correction in the last one year by NRB will be allowed to apply, while those that have been subjected to any action will not be allowed to apply.
NRB has also stipulated that the refinancing institution should adjust the interest rate so that the interest rate of the entire borrower is reduced based on the available resources.
It has also been mentioned that applications which have not been submitted properly and have not been registered in time will not be accepted.
Earlier, NRB had called BFIs to apply for refinancing distribution targeting medium level borrowers affected by COVID-19 pandemic.