The banks of Banepa and Dhulikhel of Kavre district have decided not to provide bank loans without collateral under the Youth Self-Employment Programme (SEP) that was announced earlier by the government.
A joint meeting of Kavre Chamber of Commerce and the banks representatives on Saturday came up with a decision that they will not provide the loans for the self-youth employment scheme.
Raghu Nath Ghimire, chief of the loan department at Annapurna Development Bank said that the government had failed to provide assurance that the banks investments will be secured if they provide loans without collatteral.
The bank said that the many borrowers of Agriculture Development Bank Limited (ADBL) who earlier got waiver on too are seeking loans under the self-employment scheme. Many of these borrowers did not pay loans even when they had provided the bank the collateral.
If these people will be given loans without collaterals, it is likely that they would not pay the loans, the bank stated.
The banks feared that nobody would be responsible if the borrowers would not return loans.
They have not provided loans to the youths without collateral due to the lack of clear policy of the government, representatives of banks said.
At the meeting, Rana Bahadur Shrestha, joint secretary at the Ministry of Finance and Member Secretary of the Self-employment funds urged the banks to provide loans up to Rs. 200,000 under the self employment programme without any fear.
He said that the government had the responsibility to return loans if the borrowers did not pay loans.
Shrestha said that the government would collect their loan from selling their property if they denied paying the loans.
The government had collected Rs. 420 million from one day’s salary of the all civil servants for operating the programme effectively.
The Kavre Chambers of Commerce and Industries had provided orientation training to 3500 youth to provide loan.
A total of 14,000 applications had received by the chambers.
Source: gorkhapatra.org
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Sunday, June 14, 2009
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