CIT announces 1.25% extra interest for retirement scheme

By A Staff Reporter,Kathmandu, July 18: The Citizen Investment Trust (CIT) has announced to offer 1.25 per cent extra interest in addition to the regular interest to the participants of the Employee Savings Growth Retirement Fund, from the profit of the Fiscal Year 2023//24. The board of directors of the CIT has already approved the scheme. 

The participants will get the reward in their balance up to the end of March 2079. According to Uddhab Silwal, Information Officer of the Trust, about Rs. 1.66 billion will be distributed to about 350,000 participants of the retirement scheme. 

The CIT said that the interest rate has changed from Tuesday, July 16 (the first day of the FY 2024/25). According to the changed interest rate, the participants of the Employee Savings Growth Retirement Fund will get 6.50 per cent interest. The interest rate of 80 per cent of the loan amount of this scheme – borrowing from the CIT - has been fixed at 8 per cent. Earlier, its interest rate was 8.5 per cent. 

The interest rate on the institutional side of the Citizen Unit Scheme is 7 per cent and 7.50 per cent on the individual side. Similarly, the interest rate has been fixed at 5.50 per cent for gratuity and pension schemes, 5.50 per cent for investor retirement fund schemes, 6 per cent for national insurance funds and 5.50 per cent for national civil servants' life insurance funds.

Likewise, loan interest is set at 8.50 per cent for educational loans, 8.50 per cent for housing loans, 9 per cent for simple loans, and 9 per cent for vehicle loans. Earlier, the interest rates were 9.50 per cent for educational loans, 9.50 per cent for housing loans, 9.50 per cent for simple loans and 9.50 per cent for vehicle loans. 

The fund reviews the interest rates offered and charges to the participants every quarter.