KATHMANDU: The quake survivors of Jajarkot district are eligible for a house loan of up to Rs 2.5 million at a maximum interest rate of two percentage points above the basic rate.
Nepal Rastra Bank (NRB) has come up with a provision for facilitating the reconstruction of the quake-damaged houses in Jajarkot through the first quarterly review of the Monitory Policy for the current fiscal year 2022/23.
For this, provisions will be made for the banks and financial institutions (BFIs) to add up to 10% to the loan or mortgage ratio of the loan securities.
It may be noted that the 6.4 magnitude earthquake with its epicentre in Ramidanda of Jajarkot on November 3, caused a huge loss of life and property thereby forcing over 34,000 families to live in tents due to the destruction of houses by the quake.
Furthermore, the central bank made provisions for the BFIs to contribute up to 40% of the amount to be spent separately to the Social Responsibility Fund from the profits of the ongoing fiscal year as well as previsions fiscal year. The contribution targets the reconstruction of quake-damaged community schools, public hospitals and healthcare centres in the quake-affected areas.
Similarly, the central bank has reduced the risk burden of real estate loans and share mortgage loans of more than Rs 5 million provided by the BFIs to 125%.
In the case of house loan up to Rs 5 million, the monthly instalment income ratio has been increased to 60%.
