Kathmandu. Nepal Rastra Bank has issued a circular to the banks and financial institutions for the implementation of the new arrangements made through the first quarter review of the monetary policy of the current financial year. The Central Bank reviewed the monetary policy and made some additional provisions and amendments. It has been arranged that the loan disbursed for the enterprise business of the districts affected by the floods, including Ilam, can be restructured at the request of the borrower.

Banks and financial institutions have to analyze the borrower's cash flow and income and collect at least 10 percent of the interest to be paid on the basis of necessity and justification and restructure by next March. At the time of restructuring or rescheduling, there is a provision that the classification and loan loss system should be maintained at least in the category in which the loan is classified.

Likewise, from now on, banks and financial institutions will be able to disburse unopened personal loans including overdrafts up to one crore. According to the Central Bank, it has been arranged that banks and financial institutions should maintain a 100% loan loss system for the amount that exceeds the specified limit.

Similarly, the interest rate of loans provided to the licensed organizations as per the existing law has been fixed at 5.75 percent. Earlier such interest rate was 6 percent.

The Central Bank has also made some new arrangements regarding rescheduling and restructuring of loans to 'D' category financial institutions.

It has been arranged that people belonging to the poor and low-income group or not can be provided with micro-loans worth 1.5 million per person for the purpose of running agriculture, small enterprises or businesses by taking acceptable mortgages.

Earlier, such a loan could be provided only equal to seven lakhs. Only one of the loans or mortgage loans can be provided to the members belonging to the group at the same time.