Phidim, May 14

Agriculture Development Bank of Tehrathum, Myanglung, has waived off millions of rupees in interest on loan for borrowers who failed to pay back the loan they had taken from the bank.

According to branch manager Tek Bahadur Shrestha, interest on loan amounting to 3.5 million rupees that 54 small farmers owed to the bank in the district has been waived off.

“Most of them whose interest on loan has been thus waived off are small farmers who borrowed during the insurgency period and within the range of 15,000 to 30,000 rupees,” said the branch manager.

Earlier, the bank had declared it would grant complete waiver of interest on loan up to Rs 30,000 borrowed before mid-January 2010 if the borrowers paid the loan amount by mid-June this year.

Similarly, while borrowers within the range of 30,000 to one lakh rupees are entitled to 95 per cent waiver in interest, those whose borrowed amount exceeded 1 million rupees could

pay back the borrowed amount plus equal amount in interest.

The bank came up with the scheme of interest waiver before taking to foreclosing on their mortgages and putting them on auction. According to bank sources, it has informed all the borrowers within the scope of the scheme of the facility.

Of them, 20 farmers have approached the bank and paid the loan under the scheme. Earlier too, the bank in 2011 had announced such a scheme for conflict victims.