Microfinance and Deprived Sector Credit Guarantee
- Loans advanced by the member institutions under micro-finance and deprived sector shall be guaranteed by the Fund as follows:
- Loans advanced to each individual under group guarantee up to Rs. 1 million.
- Loans advanced to each individual with collateral up to Rs. 2 million.
- Loans advanced to each individual with educational certificate as collateral up to Rs. 0.70 million.
- Loans advanced up to Rs. 1.5 million with the prior consent of DCGF for micro-enterprises promoted by women entrepreneurs under personal or group guarantee or project collateral.
- Loans advanced to Dalits and foreign returned citizens with skill-based training under group guarantee or project collateral up to Rs. 1 million.
- The premium rate is fixed at 0.8% per annum out of which only 50% of premium amount (i.e 0.40% of the guaranteed amount) shall be paid by the member institution at the rate of 0.20% each on the outstanding loan of Poush end and Asadh end respectively. Remaining 50% of premium amount (i.e 0.40% of the guaranteed amount) will be received as subsidy from the Government of Nepal. In case of subsidized loan, the subsidy is claimed from Nepal Rastra Bank.
- 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 is 75% of the outstanding balance of the loan at due date.