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In the monetary policy of the next fiscal year being prepared by Nepal Rastra Bank, Federation of Commerce and Industry of Koshi Province has suggested that small entrepreneurs including start-ups should reduce the fee of electronic payment from cheap loans.
The suggestions include capitalization of uncollected interest during loan rescheduling or restructuring, the limit of loan to share mortgage should be 80 percent, the loan-to-value ratio of housing and real estate loans and their mortgage security should be at most 50 percent.
These are the main suggestions:
- As the working capital requirement is determined according to the nature of the industrial business, it is said that the current guidelines impose an impractical policy by keeping all the industrial businesses on the same standard. It is suggested that working capital loans for manufacturing industries should be determined based on the study of financial reports.
- It has been said that the system of zeroing the working capital loan once a year for 7 days is irrelevant and should be abolished.
- It has been mentioned that the current system of not giving loans at the end of the quarter is not relevant and this system should be changed as business opportunities can arise at any time.
- At present, the financial needs of SMEs/MSMEs are being determined based on the analysis of user audit reports, so it is said that in the case of such businesses, qualitative boundaries should be set and an environment for expansion should be created.
- It is mentioned that although the repayment period of working capital loans is fixed for three to ten years, due to the recession and lack of liquidity seen in the external business environment, the industrial establishments are unable to pay within that period.
- Since interest rates increase uncertainty in business, it is said that measures to bring stability to interest rates should be included in the monetary policy and clear, transparent and predetermined criteria should be adopted in interest rate determination.
- It has been suggested that foreign currency exchange should be facilitated for import-dependent businesses, especially raw material and technology-based industries.
- It has been said that fees should be reduced in the digital payment system and access to technology should be expanded, which will reduce business operating costs.
- The federation is demanding the continuation and expansion of special loan schemes, interest subsidies and concession programs for women, youth and startup entrepreneurs.
