RBB announces agro loan at 5 percent interest rate

KATHMANDU, Jan 5:

Rastriya Banijya Bank has announced to provide agricultural loans at 5 percent interest rate.

The state-owned bank brought the scheme in line with the government´s plan to issue agricultural loans to youth at 6 percent.

The bank´s interest rate on agricultural loan is nine percent. Issuing a statement on the occasion of its golden jubilee on Sunday, the bank said the government will provide interest subsidy of four percent to the bank for such loans.

Finance Minister Ram Sharan Mahat had announced subsidized agricultural loans with interest rate of 6 percent through the budget for fiscal year 2014/15. Though Nepal Rastra Bank (NRB) had introduced working procedures for issuing such loans three months ago, not a single individual has received such loan under the scheme and commercial banks have cited procedural hassles.

Likewise, RBB has also announced professional loan for different professionals at a reasonable interest rate. It also has floated an idea of establishing a micro finance development bank to provide its service to disadvantaged communities in the remote areas.

Source: Republica