Kathmandu. KATHMANDU: The Ministry of Finance has endorsed the ‘Work Procedure on Interest Grant for Concessional Loans (First Amendment) 2083’ in order to make the work procedure related to interest subsidy for concessional loans more practical and creditor-friendly.
This work procedure has been implemented by the Honorable Finance Minister level on July 3, 2083 in exercise of the powers given by the sub-section (4) of Section 65 of the Financial Procedures and Financial Accountability Act, 2076.
In case of the loans renewed as per the Integrated Work Procedure, 2075, the interest subsidy will be available for five years from the date of commencement of the grant. A provision has been made to obtain the self-declaration of the borrower for not receiving the grant from the National Disaster Risk Reduction and Management Authority while issuing private house construction loan to the victims of natural disasters.
If a borrower who has not been able to pay the installment in any quarter due to circumstantial reasons, he can ask for full-term interest subsidy by ensuring that the loan has been utilized by clearing the arrears in the next quarter. In the case of the loans issued as per the working procedure of 2075 BS, the services and conditions related to loan, interest subsidy, loan security and insurance will remain as per the same procedure.
If the loan is regularized by paying the principal interest in the next quarter due to circumstantial reasons but the loan is not paid in one quarter, and if the loan is proved to have been utilized, the interest subsidy for the entire period will be given.
Banks and financial institutions can proceed with the home loan process only on the basis of the borrower’s self-declaration. It has been clearly clarified that the interest subsidy will be received for five years from the date of commencement of the grant. In case of loans issued as per the working procedure of 2075 BS, the same work procedure, provisions related to insurance, security and grants would be applicable.
