he Nepal Rastra Bank (NRB) has made certain revisions in its previous directive for microfinance institutions. The updated circular allows borrowers who are unable to service their loans due to circumstantial reasons to restructure or reschedule their loan once. MFIs can restructure or reschedule the loans allowing an extension of the repayment period by up to 3 years. The restructuring or rescheduling of the loan must be completed by the end of Poush 2081.
MFIs however must justify the need and basis for such recommendation for each borrower.
The directive also prohibits charging any fees, penalties, or additional charges to borrowers during the restructuring and rescheduling process.
Once the loan is restructured and/or rescheduled, MFIs can recommend to the Credit Information Bureau (CIB) for the borrower’s removal from the blacklist.
