Kathmandu: The Nepal Rastra Bank (NRB) has introduced provisions to facilitate the reconstruction of houses for earthquake survivors in Jajarkot district through the first quarterly review of the Monetary Policy for the fiscal year 2022/23. As part of this initiative, survivors are now eligible for house loans of up to Rs 2.5 million, subject to a maximum interest rate of two percentage points above the basic rate.

To support this endeavor, banks and financial institutions (BFIs) have the flexibility to add up to 10 percent to the loan or mortgage ratio of the loan securities. The move aims to aid families affected by the 6.4 magnitude earthquake that struck Jajarkot on November 3, leading to substantial loss of life and property, with over 34,000 families forced to live in tents due to widespread house destruction.

Moreover, the NRB has mandated BFIs to allocate up to 40 percent of the amount spent separately to the Social Responsibility Fund from profits in the current and previous fiscal years. This contribution is directed towards the reconstruction of quake-damaged community schools, public hospitals, and healthcare centers in the affected areas.

In addition, the NRB has eased the risk burden for real estate loans and share mortgage loans exceeding Rs 5 million provided by BFIs, reducing it to 125 percent. 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 quake survivors