July 28: Nepal Rastra Bank has instructed banks and financial institutions (BFIs) to increase the time period for payment of loans and interest by six months to two years depending on the impact on the respective businesses.

The central bank has categorized the affected businesses into three groups – highly affected, affected and less affected. The time period for repayment of loan and interest has been fixed in accordance to the provision in the monetary policy for the current fiscal year.

The central bank has instructed the concerned bodies to implement the provision in the monetary policy after amending the Integrated Directive 2076 on Monday (July 27).

As per the instruction of the central bank, the businesses that have been highly affected by Covid-19 will be able to repay their loan and interest within two years from the start of the current fiscal year. NRB has also instructed to collect such loan gradually in two installments, three installments and 4 installments. The central bank has also instructed BFIs not to charge any interest or fine for such amount during the given period.

All sectors affiliated to the tourism industry can avail such facility. Recreation businesses, party palaces, film industry, distributors, cinema halls also fall under the same category.

Workers who have lost their job and Nepalese migrant workers can also get such relief.

People involved in vegetable and fruits business, floriculture, diary production, poultry farming and animal husbandry can also enjoy the facility of repaying loan in two years without any interest.

Readymade garments, handicraft and artisans as well as educational consultancies also fall under the same category.

Meanwhile, other sectors that have been affected by Covid-19 will be allowed to repay their loans within 9 months without any interest or fine. Plastic, iron and steel industries, leather and metal producers fall under this category. Likewise, private and residential schools and colleges, universities, technical schools, pre-schools and child care centres can avail this facility as well.

Transportation service providers, beauty parlours, consultation agencies, hospitals, construction companies, pharmaceutical industries, publication houses also fall under this category.

Similarly, the sectors least affected by Covid-19 can repay their loan within six months from the start of the current fiscal year.

Hydropower projects, e-commerce companies, food production companies, refinery, among others fall under this category.