Government to set up fund to extend easy loans to women

KATHMANDU, MAR 21 -

The Ministry of Industry (MoI) is all set to set up a fund to extend collateral-free loans to women entrepreneurs in a bid to encourage women to start their own business.

The proposed Women Entrepreneurship Development Fund (WEDF) will have an initial funding of Rs 100 million as per the budgetary provision of the current fiscal year.

The ministry has already prepared a proposal regarding the establishment of the fund. “We will send the proposal to the Finance Ministry within a couple of days, seeking its approval and necessary budget,” said Yam Kumari Khatiwada, joint secretary at the Industry Ministry. “Given growing participation of women in industrial production, it is high time that the government support their enterprises.”

However, the ministry is yet to finalise the modality for disbursing the credit. After the Finance Ministry approves the proposal, the Industry Ministry plans to devise a clear mechanism on loan disbursement. The fund will provide loans worth up to Rs 200,000 to a woman entrepreneur or a firm, according to the draft proposal.

“The fund is expected to come into operation from the next fiscal year, even if delayed,” said Industry ministry Joint Secretary Anil Thakur.

Women entrepreneurs had long been demanding the formation of such a fund to promote women entrepreneurship. And, they have expressed their thanks to the government for this initiative.

“It is a welcome move. It was necessary to encourage women to start their own macro-enterprises that ensure self-employment and capital mobility. This will also help in long-term economic development,” said Chhaya Sharma, president of the Federation of Women Entrepreneurs of Nepal (FWEN).

As a majority of women do not own property, it is very difficult for them to get loans from banks, said Sharma, adding that the formation of the fund will be of great help.

Source: Kantipur