• The loan advanced by the member institutions to agricultural sector up to Rs. 5 million shall be guaranteed by the Fund. If the member institution wishes for guaranteeing loan greater than Rs. 5 million, the member institutions with the prior approval of the Fund to disburse such loans can guarantee their investment up to Rs. 20 million.
  • The premium rate is fixed at 0.6% per annum out of which only 50% of premium amount (i.e 0.30% of the guaranteed amount) shall be paid by the member institution at the rate of 0.15% each on the outstanding loan of Poush end and Asadh end respectively. Remaining 50% of premium amount (i.e 0.30% of the guaranteed amount) will be received as subsidy from the Government of Nepal.
  • The maximum tenure to lodge claim by member institutions with the Fund is within two years from the due date of payment of Loan.
  • The compensation rate on guaranteed loan upto Rs 5 million is 80% of the outstanding balance whereas the compensation rate on the guaranteed loan above Rs 5 million upto Rs 20 million is 70% of the outstanding balance..