Kathmandu – The Ministry of Finance has released Rs 9.80 billion to cover the long-delayed interest subsidies on concessional loans. The amount was disbursed to Nepal Rastra Bank on Saturday.

For a long time, banks and financial institutions had stopped issuing new concessional loans because the subsidy amount had not been released, forcing borrowers to pay higher interest rates.

According to a letter from the Finance Ministry, under the approved annual program of fiscal year 2082/83 (2025/26), funds allocated for the second quarter were adjusted to the first quarter, and the subsidy amount for concessional loans provided in the past seven quarters has now been settled through this release.

With the government clearing most of the outstanding subsidy payments, the possibility of banks and financial institutions resuming concessional loan distribution has increased.