Kathmandu: In response to the devastating 6.4 magnitude earthquake that struck Jajarkot district on November 3, the Nepal Rastra Bank (NRB) has introduced crucial measures to aid survivors in rebuilding their lives. The first quarterly review of the Monetary Policy for the fiscal year 2022/23 outlines provisions aimed at facilitating the reconstruction of quake-damaged houses.
House Loans for Survivors:
Quake survivors in Jajarkot are now eligible for a house loan of up to Rs 2.5 million with a maximum interest rate capped at two percentage points above the base rate.
Loan Securities Boost:
The NRB has empowered banks and financial institutions (BFIs) by allowing them to add up to 10 percent to the loan or mortgage ratio of the loan securities.
Corporate Social Responsibility Contribution:
BFIs are mandated to contribute up to 40 percent of their profits from the ongoing and previous fiscal years to the Corporate Social Responsibility Fund. This fund will be dedicated to reconstructing quake-damaged community schools, public hospitals, and healthcare centers in the affected areas.
Risk Burden Reduction:
In a bid to ease the financial burden, the NRB has reduced the risk associated with real estate loans and shared mortgage loans exceeding Rs 5 million to 125 percent.
Monthly Installment Adjustment:
For house loans up to Rs 5 million, the monthly installment income ratio has been increased to 60 percent, providing further financial relief to the affected families.
The NRB’s comprehensive measures are aimed at expediting the recovery process for the over 34,000 families who continue to endure the aftermath of the earthquake, which resulted in significant loss of life and property. The central bank’s initiatives underscore a commitment to supporting the reconstruction and revitalization of the quake-affected areas in Jajarkot district.