RBBl Sign Agreement With Deposit and Credit Guarantee Fund on Agricultural Loan Guarantee

Rastriya Banijya Bank Limited (RBBL) and the Deposit and Credit Guarantee Fund have signed an agreement on Thursday to launch an individual agricultural credit guarantee scheme. 

The agreement was signed at the Fund’s office in Tangal, Kathmandu, by RBB CEO Devendra Raman Khanal and Fund CEO Dila Ram Giri on Thursday, Bhadra 18, 2083.

Under the scheme, agricultural loans will be provided in nine local levels across Kavrepalanchok, Jumla, Surkhet, Bajura and Kailali. The scheme will run for two years, with up to Rs 8 crore allocated for investment in each local level. The loan amount will range from Rs 250,000 to Rs 3 crore per borrower, with a maximum repayment period of seven years.

A Rs 30 crore guarantee fund will be established for the scheme, with Rs 10.5 crore from the Deposit and Credit Guarantee Fund, Rs 4.5 crore from the participating local levels and Rs 15 crore from the UN Joint SDG Fund. The scheme aims to promote entrepreneurship, improve agricultural productivity, strengthen food security and create employment in the participating areas.