Finance Minister for lowering interest rate on loan to poor people

KATHMANDU: Finance Minister Janardan Sharma has urged the banks and financial institutions (BFIs) to reduce the interest rate on loans that they provide to the poor people.

addressing a program organized by National Cooperative Bank Limited (NCBL) on Tuesday, Finance Minister Sharma said that exorbitant interest rates being charged on the loans provided by the cooperative banks, primary cooperatives and microfinance institutions in particular is higher to poor people and that it should be reduced.

On the occasion, Sharma also expressed his commitment to initiate a process to reduce the existing gaps in interest rates on credits given to the poor people and the rich people. He also expressed his concern over the existing mechanism in which the cheques issued by the cooperative banks are not considered by the common clearing system implemented for other banks.