The government will spend Rs. 67.7 billion in interest subsidies to help banks offer Rs. 174 billion in loans at 0% to 5% interest to small and medium businesses, under Budget 2027.
Several targeted schemes sit within the pool:
0% interest loans for small rice millers
3% loans of up to Rs. 1 million for women-headed households
3% loans of up to Rs. 2 million for families running tourist homestays
4% loans for rural businesses that hire Aswesuma beneficiaries
Rs. 7.5 billion is set aside for homestay loans, and Rs. 15 billion for fishery export loans.
A new Microfinance and Credit Regulatory Authority will be established, bringing stricter rules for microfinance lenders.This means high subsidised loan growth alongside tighter oversight of the sector.
