KATHMANDU, Nov 14: Finance Minister Janardan Sharma has urged banks to accept lands in rural areas as collateral for loans.
In a meeting with the governor of Nepal Rastra Bank (NRB), CEOs of commercial banks, and representatives of the business community held on Friday, Minister Sharma made the request during a discussion to find a way out of the liquidity crisis in banks.
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Stating that the banks have been selective in providing loans to people who put their lands as collateral, Sharma said that the poor farmers of rural areas have not been able to take loans from banks. “The banks need 10 feet of motorable roads to pass a loan. Banks don't even give loans for lands that bear walnut trees. They have to be able to take agricultural collateral for agricultural loans,” he said.
He also said that there is no use of a bank that is not capable of providing loans to poor farmers. He also stressed the need for banks to revise their policies in a timely manner.
