Though the budget speech for fiscal year 2014/15, the government announced plan to provide agricultural loan to farmers through banks and financial institutions (BFIs) at six percent rate. Leave along subsidized farm loans, local farmers are denying local farmer non-subsidized loans as well.
After hearing about interest rate subsidy scheme, Tanka Prasad Sanjel of Ghodaghodi Municipality decided to start livestock farming. He purchased five water buffaloes and 10 pigs after borrowing some money from a local informal lender, hoping that he would pay pack the lender after securing bank loans. However, he couldn't get subsidized farm loans. BFIs even denied him loan on normal interest rate. After Sanjel failed to pay back the money, the lender took three water buffaloes and five pigs from Sanjel's farm.
"Every bank that I approached said they do not have any program for agricultural loans," Budhathoki said.
Similar is the case with RN Budhathoki who aborted his plan of flying abroad to start livestock farming after he came to know about interest rate subsidy program. However, he is yet to get such loan.
"Now I am left with no option other than flying abroad," Budhathoki said. "Farmers like me do not get loans from banks even on normal interest rate leave alone subsidized rate."
According farmers, every bank that they approached for subsidized farm loans say they have not received circular regarding interest rate subsidy on farm loans.
However, Dilaram Subedi, acting director of Dhangadi Office of Nepal Rastra Bank (NRB), said they have already sent letters to all commercial banks to implement interest rate subsidy program. "Local banks tell us that no one has approached them for such loans," said Subedi. "We will take serious action against BFIs if they are found returning farmers, who approach them for subsidized farm loans, empty-handed," he added.
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