April 22: The Confederation of Banks and Financial Institutions Nepal (CBFIN), an umbrella organisation of commercial banks, development banks and financial institutions of the country, has decided to charge one percent less interest on loans up to Rs 10 million from April 13 onward to small and medium-scale enterprises (SMEs).

The confederation said that its members decided to lower the interest rate considering the impact of coronavirus on the economy and the borrowers.

According to CBFIN, the borrowers can enjoy the facility until further notice.

Borrowers who have taken loan from commercial banks at 10 percent interest will now have to pay 9 percent interest during this period.  Likewise, individuals and firms borrowing up to Rs 4 million from development banks and Rs 2 million from finance companies can also enjoy this facility.

The confederation made this announcement on Tuesday (April 22) while unveiling a special relief package for the borrowers bearing the brunt of coronavirus and the lockdown imposed by the government. A meeting of the confederation members had taken a decision to this effect a day earlier on April 21.

Likewise, the confederation has announced 10 percent discount on payment of interest within the month of Baishakh (mid-May). CBFIN said its members will also not slap any fine if the pending loans are cleared within mid-May.