NRB calls on eligible citizens to acquire business loan

KATHMANDU: The Nepal Rastra Bank (NRB) has issued a notice, calling on eligible citizens to acquire business loan by keeping educational certificates as collateral.

In the budget for the current fiscal year 2018-19, the government announced various programmes like 'Educated Youth Self Employment', 'Women Entrepreneurship', and 'Agriculture and Livestock', promising subsidised loan for those interested to start their own business.

The central bank had earlier issued a circulation directing all the commercial banks and financial institutions to make arrangements for providing the loans against academic certificates.

With the implementation of integrated interest grant procedure-2075 BS related to subsidised loans introduced by the Ministry of Finance, eligible candidates may take loans from commercial banks, development banks and other financial institutions.

Microfinance companies are, however, not allowed to provide such loans.

As stated by the NRB, any Nepali youth completing the secondary level education or equivalent to it and not exceeding 25 years of age can apply for the loan to continue with higher education or pursue technical or vocational education.

Under this scheme, a youth can acquire a loan up to Rs 500,000 and the interest rate will not exceed two per cent.

Similarly, to take a loan under the 'Educated Youth Self Employment' programme, original academic certificates will be kept in the bank or financial institution as collateral.

The applicant must have a Permanent Account Number (PAN) and must not be blacklisted in any banking case.