A. Loan @ 2% interest rate

In view of the very limited access of microfinance services to remote hills and mountain areas of the country, RMDC has launched new incentive scheme for nineteen hills and mountain districts namely Achham, Bajhang, Bajura, Bhojpur, Darchula, Dolpa, Humla, Jajarkot, Jumla, kalikot, khotang, Manang, Mugu, Mustang, Okhaldhunga, Sankhuwasabha, Solukhumbu, Taplejung and Tehrathum under the scheme. RMDC provides loans to local microfinance cooperatives or the branches of the MFIs at 2% per annum interest rate up to one million rupees. It is hoped that this will facilitate them to keep at least 2 local staff with the margin income. Besides, RMDC also has initiated to deploy field teams to these districts to identify potential microfinance cooperative, collect and appraise loan applications and approve loan up to a certain limit on the spot. This will help them reduce their borrowing cost. RMDC plans to cover all the 75 districts by next fiscal year.

B. Two new loan products

RMDC has introduced two new loan products for its existing partner MFIs names Bridge loan and Special loan. These loan facilities are approved and disbursed with quick and simple procedure even without conducting field investigations.

i. Bridge loan: This is a short term loan, which aims to fulfill the immediate requirement of fund of MFIs for continuation of the new loan demand of their clients, during the period when their loan application is under process after submission to the Centre. The term for this loan is maximum up to six months and once the regular loan is approved this loan is adjusted with that. To avail this loan facility the partner MFIs have to fulfill following requirements:

1. Have utilized at least three loan facilities from RMDC.
2. Have submitted loan application for the new loan.
3. Have enough net worth for additional loan.
4. Have maintained good track record by repaying loan installment and interest on time.
5. Have operated on profit. 

ii. Special loan: This loan has been introduced to solve the immediate liquidity problem of the MFIs. In case of this loan MFIs can take and repay the loan at any time as per their requirement within the approved credit limit. The term of this loan is one year and the Centre can renew the facility on the request of MFIs. To avail this facility, the partner MFIs have to fulfill those requirements set for Bridge loan and also the MFIs should have utilized at least five loan facilities from the Centre.