Under the scheme, the release says businesses that have been operating successfully for at least three years without the need for owners to pledge their personal properties as collateral can easily get the loans. [break]
“The loan will be extended based on the past record and feasibility of the business supported by a letter of reference from an acceptable source such as trade associations and existing customers, among others,” it adds. The customers can repay loan in monthly installments over a period of 5 years.
“The scheme intends to finance small businesses that are generally dependent on informal borrowings,” the statement quoted Suman Joshi, CEO of the bank as saying. Laxmi Bank has been working closely with small businesses of different sizes and shapes over the last 10 years.
In this context, Joshi said, Laxmi UdyamiKarjaa is yet another step toward aligning the bank´s balance sheet in favor of retail and small business loans.
The bank estimates at least 500 small businesses will benefit from the scheme in the next 12 months. It has also planned to expand it to markets outside the Kathmandu Valley based on the experience in the Valley.
Related story
Lending slows as banks focus on recovery of loans at fiscal yea...
