NRB Introduces Concessional Loan Provisions for Export Industries and Gen Z-Affected Businesses

Nepal Rastra Bank (NRB) has announced a set of relief measures through its new unified directive, offering subsidized loans to export-based industries and businesses directly affected during the Gen Z protests.

According to the directive, export-oriented industries employing at least 100 women will be eligible for subsidized loans. Authorized institutions may charge only up to one percentage point above the base rate for industries that export at least 25 percent of their total production with a minimum value addition of 25 percent. These loans will be available for a maximum of one year or until the concerned institution resumes full operations.

Similarly, loans provided to cover salaries and benefits of employees in industries, businesses, commercial establishments, and other economic activities adversely affected by the Gen Z movement will carry a premium of no more than 0.50 percentage points above the base rate. Such loans will also be provided for a period of up to one year, with the government offering a two percent interest subsidy for the first six months. Employers seeking this facility must submit applications by mid-January 2026.

The directive also makes provisions to support businesses in replacing vehicles and transport means damaged during the protests, allowing a loan-to-value ratio of up to 80 percent.

In addition, NRB has allowed authorized institutions to restructure loans impacted by disruptions at the Rasuwa and Tatopani customs points due to natural disasters. Such loans may be restructured until mid-January 2026, with their classifications maintained as they stood on 16 July 2025.

NRB stated that these measures are designed to provide timely relief, restore business operations, and safeguard employment in sectors hardest hit by recent disruptions.