Deprived Sector Credit Guarantee || Deposit and Credit Guarantee Fund

The loan advanced by the member institutions under the micro-finance and deprived sector credit guarantee scheme shall be guaranteed by the Fund as follows :
- Loans advanced without collateral under group guarantee upto Rs. 5,00,000 per individual,
- Loans advanced with collateral upto Rs. 10,00,000 per individual,
- Loans advanced with educational certificates as collateral upto Rs. 7,00,000 per individual, and
- Loans advanced to micro-enterprises promoted by women entrepreneurs up to Rs. 7,00,000 per loan with personal or group guarantee basis in addition to project collateral with the prior consent of the Fund is guaranteed by DCGF.
The premium rate is fixed at 1% per annum out of which only 25% of premium amount (i.e 0.25% of the guaranteed amount) shall be paid by the member institution at the rate of 0.125% each on the outstanding loan of Poush end and Asadh end respectively. Remaining 75% of premium amount (i.e 0.75% 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 is 75% of the outstanding balance of the loan at due date.

Deprived Sector Credit Guarantee