Nepal | July 04, 2020

NRA forms committee to simplify process of extending grant, loans

Himalayan News Service
Share Now:

Kathmandu, February 25

The National Reconstruction Authority (NRA) today formed a five-member committee to frame a guideline to ease the process of extending grant and loans to victims of devastating earthquakes of April and May.

The committee, formed under NRA Joint Secretary Ram Prasad Thapaliya, comprises officials of the Ministry of Finance, Nepal Rastra Bank (NRB), the NRA and an independent consultant.

“It will review existing provisions on extension of grant and credit to quake victims, and simplify procedures so that borrowers and beneficiaries of the grant amount can reap maximum benefit from these arrangements,” NRA Under Secretary Bhisma Kumar Bhusal told The Himalayan Times.

As of now, NRB has introduced a guideline that entitles owners, whose houses have become uninhabitable by the quakes, to credit at subsidised interest rate of two per cent. The ceiling on these loans, which could be obtained through banks and financial institutions, has been fixed at Rs 2.5 million for quake victims of Kathmandu Valley and Rs 1.5 million for victims residing outside the Valley.

On top of this, the government has pledged to extend a grant of Rs 200,000 to every owner whose house was destroyed by the quakes. This amount would be provided in three instalments of Rs 50,000, Rs 80,000 and Rs 70,000.

Also, the government has pledged to extend a credit of
Rs 300,000 at a subsidised interest rate from selected banks and financial institutions to victims whose houses have been completely damaged.

“Although all these arrangement have been put in place, some of the provisions are not very friendly for earthquake victims,” said Bhusal.

For instance, earthquake victims who have acquired loans at two per cent interest will not qualify for the grant amount of Rs 200,000. Many say this may be one of the reasons why very few victims are reaching out to banks and financial institutions to obtain home loans.

“These provisions need to be reviewed and simplified,” said Bhusal.

“Also, NRB has issued directive to financial institutions to extend loan at two per cent interest. But banks have not framed a guideline for borrowers who want to take advantage of this facility. The committee will draft a guideline, which would be acceptable to all the banks and financial institutions.”

Apart from these, the International Organisation for Migration has also proposed to extend interest-free loans to families of Nepalis working abroad. “The committee will also look into this matter and see how the credit can be channelled,” said Bhusal, adding, “The committee has been asked to frame the guideline immediately.”

The earthquakes destroyed at least 510,000 private houses and another 291,707 houses were damaged by the disaster.


A version of this article appears in print on February 26, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

City honour Liverpool - then hammer them 4-0

MANCHESTER: Manchester City generously applauded new champions Liverpool onto the field before their Premier League match on Thursday -- and promptly showed no mercy by thrashing them 4-0 at the Etihad stadium. With the title secured a week ago, there was little at stake for Juergen Klo Read More...

Real Madrid close on title as Ramos late show sinks Getafe

MADRID: Real Madrid captain Sergio Ramos kept his nerve to score a late penalty and secure a hard-fought 1-0 home win over Getafe on Thursday for a sixth consecutive La Liga victory to take his side one step closer to winning the title. Ramos coolly passed the ball into the net to brea Read More...

File photo of the headquarters of the World Health Organisation in Geneva

Pay attention to mental health, prevention of suicide: WHO

Kathmandu, July 2 With the COVID-19 pandemic still spreading and impacting people in multiple ways, World Health Organisation today called upon South-East Asia region countries, including Nepal, to pay greater attention to mental health and suicide prevention. “Hitting lives and livelihoods, Read More...

Government urged to make transport service effective

Workers in transportation sector face risk of losing their livelihood as the service is yet to resume KATHMANDU, JUNE 2 National Assembly lawmakers have drawn the attention of the government to the need of making transport service effective by adopting required health safety measures as life h Read More...

EU, UNICEF to prevent malnutrition in Nepal

KATHMANDU, JULY 2 European Union and UNICEF have expanded their partnership on nutrition to prevent malnutrition in children due to the socio-economic impact of the pandemic. Socio-economic impact of the COVID-19 crisis has pushed many vulnerable families across Nepal into deeper poverty and h Read More...

Bill proposing facilities for local reps tabled

POKHARA, JULY 2 Amid protest from the opposition party, a bill was tabled in the Provincial Assembly meeting of Gandaki Province proposing facilities for local level representatives today. Minister of Internal Affairs and Law Hari Bahadur Chuman tabled the bill which proposed facilities for me Read More...

Girls join hands to fight against drug abuse

KAPILVASTU, JUNE 2 Girls of Shivapur of Shivaraj Municipality in Kapilvastu district have joined hands against drug addiction. Girls associated with Gautam Kishori Sambad, Saraswoti Kishori Sambad and Nabadurga Kishori Sambad located in Shivapur have launched campaign to control drug addiction Read More...

Officer, Public Service Commission, Government officer,

Upset Nayab Subbas vow to continue protest

KATHMANDU, JULY 2 Nayab Subbas (non-gazetted first class officers) have threatened to continue nationwide protest until their demands are met. They have demanded revision in a few provisions proposed in the Federal Civil Service Bill, passed recently by the State Affairs and Good Governance Co Read More...