Siddhartha Bank, Nepal Rastra Bank, and KfW Development Bank  of Germany sign tripartite agreement for sustainable economic development of Rural & Semi-Urban sector

Siddhartha Bank Limited has signed a tripartite agreement with Nepal Rastra Bank and KfW Development Bank for implementing German Government supported project called “Sustainable Economic Development in Rural and Semi-Urban Areas - MSME Finance Phase II (SEDRA II)”, which was commissioned by Ministry of Finance, Nepal and German Development Financial Cooperation, Germany. The agreement was recently signed by Mr. Shambhu Nath Gautam, Chief Executive Officer of Siddhartha Bank Limited and Dr. Prakash Kumar Shrestha, Head of Micro-Finance Institutions Supervision Department of Nepal Rastra Bank.

In order to develop the micro, small and medium enterprises of Nepal, Siddhartha Bank has been selected among the commercial banks of Nepal, through Nepal Rastra Bank under Ministry of Finance Nepal. KfW Development Bank under German Development Financial Cooperation, Germany will be financing the micro, small and medium enterprises of Nepal.

The main objective of the project is to improve access to finance and entrepreneurship development by providing long term lending and technical assistance to entrepreneurs of specify rural and semi-urban areas. With financing needs in the ‘Missing Middle’ segment and flourishing medium-sized enterprises (MSMEs), under this project, the Bank will be providing following facilities:

• Rs. 2 lakhs to upto Rs. 40 lakhs financing
• Loan tenure maximum upto 10 years
• Training, consultation and other technical assistance to small and medium entrepreneurs

As the Bank have high concentration on serving the unprivileged and deprived segment of an economy, this agreement is supposed to induce the collaborative initiation between SBL and KfW Development Bank and develop the micro, small and medium enterprises of Nepal.