RBB and Sinja Rural Municipality ink deal for easy loans to farmers

By A Staff Reporter,Kathmandu, Mar. 5: A preliminary agreement has been signed between Rastriya Banijya Bank Limited (RBB) and Sinja Rural Municipality of Jumla, Karnali Province, to operate the ‘easy agriculture loan to farmers (Kisan Saral Karja) programme.

Chief Executive Officer of Rastriya Banijya Bank Devendra Raman Khanal and Chairman of Sinja Rural Municipality Purna Bahadur Dhital signed the agreement amidst a function on Monday.

After the agreement, Nepali citizens aged between 18 and 65 years engaged in any agricultural activities or legally registered firms or companies involved in agricultural business can apply for a loan with the recommendation of the rural municipality, according to a press statement of the RBB. 

This loan, which will be invested by the bank in accordance with the Agricultural Loan Guidelines, 2069 (as amended), will be of both periodic and working capital nature.

This loan will be provided for a maximum period of 10 years including a grace period. 

Under this programme, a loan up to Rs. 1 million will be provided.

The interest rate for the ‘easy loan programme’ will be determined at a premium of 0.50 per cent on the base rate. The rural municipality will provide a one per cent interest subsidy to the borrower from its fund. The bank’s base rate is currently 5.44 per cent. 

After this loan investment, commercial development of agriculture is expected, which will also support the increase in employment and income.

It is expected to bring about positive changes in the living standards of the citizens of the rural municipality with the commercial agriculture practice. 

The bank has been providing banking services through 294 branch offices, 72 extension counters, 312 ATMs and 99 branchless banking.