Educational Loan and Educational Unemployed Business Credit Guarantee

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Educational loan and Educational Unemployed Business Credit Guarantee

  1. The education loan advanced by member institutions up to the limit of Rs. 1 million.
  2. The loan advanced by the member institutions up to Rs. 5,00,000 without collateral or on a group guarantee to the educated unemployed persons for skill development and to establish and run the business on their own.
  3. The premium is fixed at 1% per annum out of which only 50% of premium amount (i.e 0.50% of the guaranteed amount) shall be paid by the member institution at the rate of 0.25% each on the outstanding loan of Poush end and Asadh end respectively. Remaining 50% of premium amount (i.e 0.50% of the guaranteed amount) will be received as subsidy from the Government of Nepal.
  4. The maximum tenure to lodge claim by member institutions with the Fund is within two years from the due date of payment of Loan.
  5. The compensation rate is 80% of the outstanding balance of the loan at due date.