DCGF, JBLBSL sign agreement for microfinance credit guarantee
KATHMANDU: The Deposit and Credit Guarantee Fund (DCGF) and Jeevan Bikas Laghubitta Bittiya Sanstha (JBLBSL) signed an agreement for microfinance and poor credit guarantees on November 30.
The agreement was signed by CEO Ramesh Ghimire on behalf of DCGF and CEO Sanjay Kumar Mandal on behalf of JBLBSL. The signing ceremony was attended by Mandira Thapaliya, Departmental Chief Manager of the Credit Guarantee Department at DCGF, Damodar Regmi, Deputy CEO of JBLBSL, and other officials.
Under this agreement, DCGF will guarantee loans up to Rs 1 million per person for members of micro businesses without collateral, or up to Rs 2 million per person for those with collateral. If the loan guaranteed by DCGF cannot be recovered, JBLBSL will claim from DCGF, and DCGF will pay 75% of the claim.
The guarantee fee for the credit guaranteed this way is 0.8% per annum, of which JBLBSL will pay 50% to DCGF. The remaining fee will be covered by the Government of Nepal as a grant to the fund. The Credit Guarantee Regulation 2075 outlines the provisions for calculating the guarantee fee in the remaining credit.
