NRB announces relief measures for businesses

Kathmandu, Sept. 27: The Nepal Rastra Bank (NRB) has announced various relief measures, including a discount on interest on business loans, restructuring and rescheduling of such loans, and a subsidy on them.

Amending its Unified Directives 2081, the central bank issued a circular allowing the banks and financial institutions (BFIs) to restructure or reschedule loans of businesses, industries and other borrowers affected in course of the Gen Z movement and other unusual circumstances, by mid-January 2026. 

However, the borrowers should request the respective BFIs for the rescheduling or restructuring of loans that fall into the criteria defined by the NRB. Loans that have been reclassified or restructured as per the newly set criteria shall be classified in the same category as they were as of mid-July 2025, and the same loan loss provisions must apply, read the directives.

As per the new directives, in the case of industries/businesses directly affected by the Gen Z movement, when providing loans for their rehabilitation and operation, BFIs must set the interest rate by adding a maximum of 0.5 percentage points to the base rate, until the business is operational.

For such loans, if the capital adequacy ratio exceeds 80:20, the loan must be classified under the ‘micro-monitoring’ category, but an exemption of one year is granted. Same interest rate provisions will be applied to the loan, requested by the Gen Z movement-affected business establishment, to pay wages through the banking system. However, such loans can be disbursed for up to one year or until the business begins operation, whichever is shorter.

The interest rate on such loans will receive a 2 per cent interest subsidy from the government for up to six months. The BFIs should pass the subsidy onto the borrower. Applications for loans for the ‘payroll protection scheme’ should be submitted to the BFIs by mid-January next year. 

Likewise, industries that employ at least 100 women, provide a minimum of 25 per cent value addition, and export at least 25 per cent of their total production may have their loan interest rate set by the authorised institution at the base rate plus a maximum of 1 percentage point.

The central bank has made significant revisions in vehicle loan provisions. For industries and businesses directly affected by the movement, loans for replacing commercial vehicles and transport vehicles damaged in the course of operations may have their loan-to-vehicle value ratio increased up to 80 per cent from the existing 60 per cent. 

Meanwhile, facilities are also extended to the traders and businesses that experienced loss and damage due ty the natural disasters at the Rasuwagadhi and Tatopani customs points – major cross-border trade points with China. As the floods in July swept away the bridge connecting Nepal and China at Rasuwagadhi, cross-border trade has since been affected. Likewise, transportation has long been affected due to multiple landslides along the Arniko Highway connecting Tatopani.

Affected businesses can request the reclassification and restructuring of their loans, said the NRB. This loan will have the same provisions applied to the movement-affected business.