Export Credit Guarantee
- Loans advanced by member institutions up to Rs. 0.2 million for the promotion of export-oriented business shall be guaranteed by the Fund under this scheme. For the loans above Rs. 0.2 million up to 1 million the member institutions have to obtain prior approval of the Fund before disbursing.
- The premium rate 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.
- 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 up to Rs 0.20 million is 80% of the outstanding balance whereas the compensation rate on the guaranteed loan above Rs 0.2 million and up to Rs 1 million is 70% of the outstanding balance.