KATHMANDU, July 26: Nepal Rastra Bank (NRB) through its monetary policy for the current fiscal year 2024/25 has introduced a provision for collateral-free loans to those going for foreign employment.

The NRB has mentioned this issue, which has found a place in the national budget for the current fiscal year, in the monetary policy as well, for effective implementation.

Similarly, the central bank has also taken initiatives to implement the policy taken in the current fiscal year’s budget to facilitate credit to the agriculture and innovation sectors.

The monetary policy states, “As mentioned in the budget statement of 2024/25 of the Government of Nepal, arrangements will be made to provide collateral-free loans to those who have obtained labor permits to go for foreign employment in various countries based on the assurance of sending remittances to their bank accounts.”

The monetary policy further states that easy access to credit will be facilitated to promote entrepreneurship among the youth.

Similarly, the NRB is going to provide support and coordination to the government to solve the problems seen in the cooperative sector. The monetary policy for the current fiscal year 2024/25 states, “ The government of Nepal will be facilitated to implement the provision of refunding up to Rs 500,000 to the saving and credit cooperatives’ members by keeping as collateral the property owned by the troubled cooperatives and their operators and their family members to solve problems seen in the savings and credit cooperatives as mentioned in the budget statement of the government for the year 2024/25”.

Published on: 29 July 2024 | My Republica