Govt to provide loan from basket fund
KATHMANDU:
The government is planning to provide self-reliant loan to youth from a basket fund that was created for employment in 2008-09.
“The fund has around Rs 5 billion that will be distributed to start small businesses,” said vice-chairman of National Planning Commission Diprendra Bahadur Chhetri.
“In the beginning, banks and financial institutions will issue loans to youth against project collateral and that will be reimbursed later,” he said, adding that banks and financial institutions should not loose their investment from participating in youth self-reliant programme.
The government is also thinking to insure loan issued under self-reliant programme. “We are exploring possibility of reducing burden from financial institutions and the government,” he said, adding that the procedure will be finalised within two weeks.
Prime Minister Dr Baburam Bhattarai aimed at providing soft loan to 50,000 youths to make them self-reliant through his relief package announced last week.
The programme is a duplication of Small Business and Youth Self-reliant programme of Maoist government introduced three years ago. Youth applied last time will get priority in getting loan to start their projects. “We call them to participate in the programme soon,” he said, adding that some 50,000 youth will get jobs under the programme.
According to him, the programme is alternate to foreign job dependency. About 1,500 Nepali youths are leaving the country to join foreign jobs every day due to lack of opportunities back home.
According to an estimate, about 450,000 Nepalis enter the job market every year and around 300,000 join foreign jobs, around 50,000 get jobs in the country and equal number of youths are unemployed.
Youths having business skills will get soft loan of up to Rs 200,000 for their project and the government will provide 60 per cent subsidy on interest.
However, the programme had failed in 2008-09 as banks and financial institutions were reluctance to float loans to youth projects.
Source: THT
The government is planning to provide self-reliant loan to youth from a basket fund that was created for employment in 2008-09.
“The fund has around Rs 5 billion that will be distributed to start small businesses,” said vice-chairman of National Planning Commission Diprendra Bahadur Chhetri.
“In the beginning, banks and financial institutions will issue loans to youth against project collateral and that will be reimbursed later,” he said, adding that banks and financial institutions should not loose their investment from participating in youth self-reliant programme.
The government is also thinking to insure loan issued under self-reliant programme. “We are exploring possibility of reducing burden from financial institutions and the government,” he said, adding that the procedure will be finalised within two weeks.
Prime Minister Dr Baburam Bhattarai aimed at providing soft loan to 50,000 youths to make them self-reliant through his relief package announced last week.
The programme is a duplication of Small Business and Youth Self-reliant programme of Maoist government introduced three years ago. Youth applied last time will get priority in getting loan to start their projects. “We call them to participate in the programme soon,” he said, adding that some 50,000 youth will get jobs under the programme.
According to him, the programme is alternate to foreign job dependency. About 1,500 Nepali youths are leaving the country to join foreign jobs every day due to lack of opportunities back home.
According to an estimate, about 450,000 Nepalis enter the job market every year and around 300,000 join foreign jobs, around 50,000 get jobs in the country and equal number of youths are unemployed.
Youths having business skills will get soft loan of up to Rs 200,000 for their project and the government will provide 60 per cent subsidy on interest.
However, the programme had failed in 2008-09 as banks and financial institutions were reluctance to float loans to youth projects.
Source: THT
