Kathmandu, August 2, 2018: Finance ministry is preparing the working procedures for the subsidized loan scheme that will be provided for the youth who are willing to implement their business plan. The loan is being drafted according to the announcement made by Yuba Raj Khatiwada. Minister for Finance comprises of pledging of the certificates as collateral. It will be available to the aspiring youth within the next two months.
Minister Khatiwada in the budget speech mentioned that the provided loan will be up to Rs. 7,00,000 with 5 % interest. The aim of this scheme is to encourage emerging entrepreneurs. Jhakka Prasad Acharya, the spokesperson for the finance ministry, said that if things go as planned, the subsidized loans will be available from November 1. Government is also planning to the introduce some measures to ensure that the loans are repaid so that the loan will float under the prerequisite delinquency. In the budget speech, NRB mentioned that it will facilitate in implementing the scheme in its Monetary Policy for FY 2018/19.
Under this scheme, more banks will be encouraged as banks and financial institutions have a provision to at least float 5 % of their loans to deprived sectors.