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.