Wage-Support Loans for Employers to Protect Jobs During Crisis

Published on September 27, 2025

The Nepal Rastra Bank (NRB) has introduced a special wage-support loan scheme to safeguard jobs and help employers retain workers during the economic disruption caused by the Gen Z Movement and related crises. Under this scheme, employers whose businesses were directly affected can apply for loans through licensed banks and financial institutions to cover employee salaries.

These loans will be issued at an interest rate of base rate + 0.5% premium, ensuring affordability for employers struggling with liquidity shortages. To further ease the burden, the Government of Nepal will provide a 2% interest subsidy for the first six months, reducing the effective cost of borrowing. The facility will only be available for up to one year or until the business resumes operations, whichever is earlier.

Employers must apply before Poush 2082, and only those institutions ensuring minimum employment standards — such as employing at least 100 women, maintaining 20% value addition, and committing to at least 20% of production for export — will be eligible for extended benefits. This measure aims to prevent mass layoffs, stabilize the labor market, and promote inclusive growth in the post-crisis recovery phase.

Loan Restructuring for Gen Z Movement-Affected Businesses

The NRB has announced targeted loan restructuring and rescheduling measures for businesses and borrowers directly impacted by the Gen Z Movement and trade disruptions. Relief measures include restructuring by Poush 2082, concessional interest rates (base +0.5%), higher LTV for vehicles, subsidized salary loans, and export-linked incentives. These initiatives aim to revive businesses, protect jobs, and stabilize Nepal’s economy.