Kathmandu, Nov 11(RSS): The Nepal Rastra Bank (NRB) has issued a notice, calling on eligible citizen to acquire a business loan by keeping educational certificates as collateral.
The government in the budget for the current fiscal year 2018-19 announced various programmes like 'Educated Youth Self Employment'; 'Women Entrepreneurship'; and 'Agriculture and Livestock', promising a subsidized loan for those interested to start own business.
The central bank had earlier issued a circulation directing all the commercial banks and financial institutions to make arrangements for providing the loans against the academic certificates.
With the implementation of the an integrated interest grant procedure- 2075 BS related to the subsidized loans introduced by the Ministry of Finance, eligible candidate may proceed for taking loans from the commercial banks, development banks and other financial institutions. Micro finance companies are, however, not allowed to provide such loans.
As stated by the NRB, any Nepali youth completing the secondary level education or equivalent to it and not exceeding 25 years of age can apply for loan to continue with a higher education or pursue technical or vocational education. Under this scheme, a youth can acquire a loan up to 500 thousand and the interest rate will not exceed two percent.
Similarly, to take a loan under the 'Educated Youth Self Employment' programme, original academic certificates shall be kept in bank or financial institution as collaterals. The youth must have a PAN and is not blacklisted in any banking case.