Kathmandu: Finance Minister, Mr. Yubaraj Khatiwada directed banks and financial institutions (BFIs) to prioritize and disseminate priorities in grants to youth and financial institutions. He also warned taking action if banks have not completed such loans if they have completed all the procedures for taking loans.
Addressing a discussion program on the implementation of Unified Directive on Subsidised Loan, Khatiwada said-“BFIs seem to be reluctant to issue subsidized loans to youths even if the latter has fulfilled all legal and banking procedures. As the government had introduced such a facility for youths to promote entrepreneurship and generate job opportunities in the country, the BFIs that do not prioritize the issuance of subsidized loans for youths will be penalized.”
Khatiwada notifies that the government would soon set up a hotline facility for the youths to register their grievances if the BFIs did not provide grants.
Nepal Rastra Bank (NRB) developed an integrated mechanism for interest for youth, which provides unemployed educated youths, returning migrant workers, women entrepreneurs, Dalits and other victims of the earthquake, to take money from BFIs at cheaper interest rates in September last year.
As per the procedure, BFIs will have to provide loans to limit set by the procedure. According to the NRB process, banks should support up to Rs 50 million in such subsidized loans under commercial agriculture and livestock. However, youths are complaining that banks are refusing to take.
But the bankers have denied the claim that they are refusing to donate funds to the youth. Chief Executive Officer of the National Commercial Bank, Mr. Kiran Kumar Shrestha said that his bank has issued such loans worth Rs 6.81 billion to almost 6,000 people so far.
Meanwhile, the National Youth Council, Rastriya Banijya Bank, the Agricultural Development Bank, and Nepal Bank agreed to give loan to the youths as a guarantee against the educational certificate.