Nepal Police and Sanima Bank Ltd have entered into an agreement to provide loan to families of incumbent cops, ex-police personnel, the next of kin of martyred police personnel and those who were maimed in the line of duty at a concessional interest rate to facilitate their livelihood.
It is part of the Police Welfare Fund’s micro-finance programme.
The Central News Section of Nepal Police informed that Bhuvan Kumar Dahal, chief executive officer of the bank and Additional Inspector General of Police Ramesh Shekhar Bajracharya, who is also the chief of Police Welfare Fund, signed a Memorandum of Understanding to this effect on behalf of their respective organisations on Monday.
As per the MoU, the bank will provide loan to eligible families of incumbent and former cops under various headings for the purpose of agri-business at an annual interest rate of only 4.5 per cent in line with the deprived sector lending of Nepal Rastra Bank.
The headings under which loan will be issued are vegetable farming, processing and storage, seed production, bee-keeping, floriculture, livestock and poultry farming, horticulture, fishery, slaughterhouse, mushroom farming and other agri-busineesses.
Police officials said an eligible person will get a loan of Rs 100,000 to Rs 300,000 -for a period not exceeding two years.
Nepal Police is preparing to form Police Welfare Coordination Centre under the coordination of the concerned zonal police offices to facilitate the micro-finance programme and expand its access to all.
The PWCC will comprise representatives from all groups of ex-police personnel.
PWCC will be formed in Birtamod, Itahari, Janakpur, Narayangadh, Pokhara, Butwal, Ghorahi, Nepalgunj, Dhangadi and Kathmandu.
According to the MoU, any borrower who misuses the loan or fails to repay within the maturity date will be liable to pay interest at the rate of 8.5 per cent.
Nepal Police will also extend necessary cooperation to the bank in recovering the loan.
The bank will draw a separate agreement with the concerned borrower while providing loan.