Kathmandu. The Employees Provident Fund (EPF) has reviewed the loan facility and has made arrangements to provide additional relief to the members. The new review will not only provide more money to members but also make the payment period flexible and adjust the interest rate at a competitive rate.
As per the new provision, a loan facility of up to Rs 40 million will be provided on a single collateral if both husband and wife contribute to the fund.
The fund has increased the limit of loan by amending the existing provision related to loans. The amount provided under various headings for short-term loans in the last fiscal year 2081. It increased by 25 percent in the current fiscal year 2082. It has increased by another 30 percent in 83 years.
This is expected to help members meet their immediate financial needs. Installment payments have been made clear and transparent. This makes it easier for the member to make a financial plan.
The facility is available only to regular contributors. This strengthens the financial discipline of the fund. Deposits and contributions in the account are considered as the basis for short-term credit facility. This ensures risk management.
| Loan Loan Tenure | Old limit (Rs) | Limit after review (Rs) | Interest Rate | Installment Payment |
|---|---|---|---|---|
| 1 year | 1,00,000 | 1,25,000 | adjusted | Monthly/Quarterly |
| 3 years | 3,00,000 | 3,50,000 | Adjusted | Monthly/Quarterly |
| 5 years | 5,00,000 | 6,00,000 | Adjusted | Monthly/Quarterly |
| Special feature | 5,00,000+ | 7,50, 000 | adjusted | long-term |
The government has been providing credit facility of up to 90 percent of the savings amount to the employees who contribute regularly to the fund, which has now been increased to 95 percent.
