Accept land not connected to roads as collateral in remote areas: Finance Minister Business 360

Accept land not connected to roads as collateral in remote areas: Finance Minister

Finance Minister Janardan Sharma holds meeting with the Governor of Nepal Rastra Bank and chief executives of various banks regarding at the Ministry of Finance on Friday, November 12, 2021. Photo: RSS

KATHMANDU: Finance Minister Janardan Sharma has requested banks to accept land that is not connected to any road network as collateral while disbursing loans in remote areas of the country. He made this request during a meeting with the Governor of Nepal Rastra Bank and chief executives of various banks regarding the current economic situation of the country. The meeting was held at the Finance Ministry on November 12.

Minister Sharma mentioned that since banks disburse loans by accepting land that is connected to a road network as collateral many farmers had not been able to avail loans. He said that if the land is of agricultural value then there is no problem in accepting it as collateral.

The Minister also said that banks should now study if the sectoral loans are being provided as mandated. He mentioned banks themselves should also monitor in which sectors the borrowers have been investing their loans and prepare a report about it. If the banks are able to do so then it will help banks gauge whether or not their funds are being utilised in the productive sector.

READ ALSO:

Share This Post

B360

Business 360 is a magazine that delivers on quality business news content, profiles of entrepreneurs and leaders, features on issues that matter, articles that assess and analyze policy and delivery mechanisms in the world of trade and commerce

Related Post

    Leave a Reply

    Rate this post

    Your email address will not be published. Required fields are marked *