RBB offers agro loan on low interest rate

Rastriya Banijya Bank (RBB) has announced that it would provide agriculture loans to youths at a 5 percent interest rate.

People in the age group of 21 to 45 years are eligible to get the subsidized agricultural loans, says the Bank.

However, the commercial banks are permitted to charge interest at a rate of 10 percent per annum on such concessional loans and the government provides a 4 percent subsidy which means borrowers actually should pay 6 percent interest.

“Loan borrowers would lend at 9 percent interest with the government’s 4 percent subsidy and the borrower would have to pay only 5 percent interests.”

As per Nepal Rastra Bank’s working procedure, the subsidized loans can be used in areas like vegetable production, seed production, floriculture, livestock, fruits production, dairy production, processing, storage and sales.

Similarly, subsidized loans can also be utilized in fishery, production and sales, mushroom production, processing and storage, animal slaughter house and meat business, herbal production, processing and storage, sugarcane, cardamom and ginger farming, storage and processing, and agriculture business.

RBB has planned to increase agricultural loans by Rs 5 billion this fiscal year and has started getting applications for the loans, adds the Bank.

Source: Nepalnews