The youth of Sundaraharaicha will get loan from Bangladesh Bank at 4 percent interest

KATHMANDU: An agreement has been reached between Nepal, Bangladesh and Sundaraharaicha Municipality to provide loans of Rs. 2 lakh to 15 lakh at an interest rate of 4 percent.

The municipality will provide the required firm registration for the loan, certify four forts, house and other recommendations free of cost.

The agreement has been signed by Shiva Prasad Dhakal, mayor of the municipality and Krishna Prasad Timsina, chief of state 1 on behalf of the bank.

The agreement stipulates that after the applicant submits the application to the ward, the ward will recommend to the municipality and on the basis of that, the municipality will recommend to provide the loan to the bank. The city has informed that if the loan turns into bad loan, the city will take initiative to take the loan and may be deprived of all the services and facilities provided by the state.

The state chief of the bank, Timsina, said that this arrangement has been made for those who have less access to banking. Similarly, educated youth will be provided loan up to a maximum of Rs. He said that the scheme has been introduced for the youth returning from abroad, Dalit youth, youth who want to become self-employed and women who want to become entrepreneurs.

The bank has agreed to provide loans at a maximum interest rate of 4 percent for men and 3 percent for women.

Though the agreement will be signed for two years from the date of signing, the liability of the municipality will remain as long as the loan is maintained, said Timsina. It is mentioned in the agreement that it can be renewed by the mutual agreement of both the parties after the expiry of the agreement period.