KATHMANDU: Rastriya Banijya Bank Limited and the Deposit and Credit Guarantee Fund have signed a memorandum of understanding to implement an individual agricultural loan guarantee scheme.
The agreement was signed by the bank’s chief executive officer, Devendra Raman Khanal, and the fund’s chief executive officer, Dilaram Giri.
Under the agreement, the scheme will be implemented across nine local levels. These include Panchkhal Municipality in Kavrepalanchok, Chandannath Municipality, Patarasi Rural Municipality, and Tatopani Rural Municipality in Jumla, as well as Birendranagar Municipality in Surkhet.
Additionally, the scheme covers Budhiganga Municipality, Budhinanda Municipality, and Triveni Municipality in Bajura, alongside Dhangadhi Sub-metropolitan City in Kailali.
The bank stated that it will invest up to Rs 160 million in these areas over two years, with an allocation of Rs 8 million per local level. The loan scheme allows for individual credit limits ranging from Rs 250,000 to Rs 30 million, with a repayment period of seven years.
This initiative is expected to contribute to the sustainable development of the national economy by fostering entrepreneurship, increasing productivity, ensuring food security, and creating employment opportunities.
