Nepal | August 04, 2020

Banks pressuring borrowers to clear dues

HIMALAYAN NEWS SERVICE
Share Now:

KATHMANDU, JULY 12

Stating that the fiscal year is coming to an end, banks and financial institutions have been pressuring borrowers to clear loan instalments and interest pertaining to the last four months.

Though businesses have been shut and salaries have not been paid for months, BFIs have been constantly making phone calls and messaging borrowers to clear all their dues by mid-July.

The banks’ move to pressure borrowers is based on the government decision to defer loan and interest payment for the lockdown period till mid-July.

However, borrowers say they are not in a position to clear the dues at one go as they are just resuming their businesses. They have urged the government to extend the loan and interest payment deadline.

“Businesses have gradually started resuming operations after the government eased the lockdown. However, no business has reached pre-lockdown level due to several factors, including lack of raw materials and market,” said Kamalesh Agrawal, vice president of the Confederation of Nepalese Industries, adding that clearing dues in such circumstances is impossible.

Not only businesses but even small borrowers are at their wits end after banks started making repeated calls asking them to deposit due instalment and interest.

“It is through salary that we pay our instalment. However, our salaries have been delayed for months,” said a borrower on condition of anonymity.

Not only are banks pressuring borrowers to deposit dues, but are also deducting instalment from borrowers’ loan account without their consent.

Bankers refuted the charge that they were pressuring borrowers to clear dues.

“However, it is the responsibility of banks to ask borrowers to pay dues and even the government’s deadline to clear due is till mid-July,” said Bhuwan Dahal, chief executive officer of Sanima Bank and president of Nepal Bankers’ Association — the umbrella organisation representing the country’s 27 commercial banks.

Meanwhile, Nepal Rastra Bank has urged bankers not to force borrowers to repay loans and deposit due amount. “While borrowers who are in a position to clear dues should do that. Banks should not force other borrowers to deposit all dues now,” said Gunakar Bhatta, spokesperson for NRB.

According to him, the Monetary Policy for fiscal 2020-21, which will be brought within this month, is likely to extend loan repayment and interest payment deadline.

A version of this article appears in e-paper on July 13, 2020, of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

NASA astronauts make historic return home aboard SpaceX capsule

US astronauts Bob Behnken and Doug Hurley, who flew to the International Space Station in SpaceX's new Crew Dragon, splashed down in the capsule in the Gulf of Mexico on Sunday after a two-month voyage that was NASA's first crewed mission from home soil in nine years. Behnken and Hurley, Read More...

Media urged to refrain from brewing controversy over court verdict, order

Media criticism of verdicts erodes faith in the judiciary Kathmandu, August 2 Nepal Bar Association today issued a press release urging media outlets to maintain restraint about court verdicts. It also said a court should not pass an order or a verdict that creates controversy. “NBA’s ser Read More...

TUTH. Tribhuvan University Teaching Hospital, Teaching Hospital, Maharajgunj

COVID patient recovers after plasma therapy

KATHMANDU, AUGUST 2 Plasma therapy was used for the first time in the country to successfully treat a 60-year-old coronavirus patient, in Kathmandu, earlier this week. The procedure was performed at Tribhuvan University Teaching Hospital, Maharajgunj. “The patient, a resident of Biratnagar, Read More...

Call to grant rights to reopen schools to local levels

Kathmandu, August 2 The government has been advised to come up with a procedure to pass on the right to reopen schools that have remained closed due to the COVID-19, to respective local governments and schools. While Ministry of Education, Science and Technology is preparing to bring a work pr Read More...

‘People’s voice will be suppressed if journalists lose their jobs’

Kaski, August 2 President of Federation of Nepali Journalists Govinda Acharya said actions such as relieving journalists of their jobs, providing half salary and exerting pressure on them to stay on leave without payment would suppress the voice of the people. During an interaction here today, Read More...

25 per cent tourism workers return to work

Pokhara, August 2 After relaxation of the lockdown to contain COVID-19, normalcy is beginning to return in the tourism sector with workers in this sector starting to return to work after four months of shutdown. Pokhara Tourism Council said 25 per cent workers associated with the tourism indus Read More...

Police vital for ensuring peace: CM Gurung

Pokhara, August 2 Gandaki Province Chief Minister Prithivi Subba Gurung today said that Gandaki Province Police Office had to play a significant role in enforcing peace and controlling crime. CM Gurung handed over keys of vehicles provided by the provincial government to Gandaki Province P Read More...

Snakebite patients up in Bheri Hospital

Nepalgunj, August 2 The number of snakebite patients has increased in Nepalgunj-based Bheri Hospital of late. Snakebite patients were admitted to the emergency and ICU wards after their numbers surged with the beginning of monsoon. As many as 10 to 15 snakebite patients reach the hospital f Read More...