State government stopping subsidized loans due to financial institutions

Minister of Economic Affairs and Planning Kundanraj Kafle informed that although the state government allocated 1.5 billion to banks and financial institutions for subsidized loans to farmers in the financial year 2081/82, additional funds will not be provided until the data of the borrowers invested by the banks and the recovery amount is collected in the state reserve fund.

In the program started by the state government in 2077 with the aim of attracting young people who have returned from foreign employment to agriculture, the ministry has so far provided 3.3 billion rupees to the banks. Instructions to submit the recovered amount to the Ministry have given The state government has been providing subsidized loans to farmers through the Agricultural Development Bank and small farmers.

According to the data of the ministry, the province has so far provided 1.66 billion rupees to Agricultural Development Bank and 1.64 billion rupees to small farmers for subsidized loans. Small farmers have invested 100 percent of the amount provided by the government.

Krishi Bikas Bank has invested only 1 billion 23 crores. Head of Agriculture Development Bank Branch Office Kantirajpath Nur Prasad Gautam informed that the remaining amount of Rs 42.56 million that could not be invested was returned to the Ministry.

The Head of Administration Division Homanath Rizal informed that till the end of June 2081, 700 million 27 million rupees of loan recovery amount has been deposited in the provincial reserve fund. Krishi Bikas Bank has not yet deposited the loan recovery amount in the provincial reserve fund.

"It is sad that the ministry is not aware of the progress details and future action plans of the funds provided by the state government through banks and financial institutions for the purpose of disbursing subsidized loans to the farmers in rural areas," said Minister Kafle. He accused the banks of being profit-oriented despite the economic situation of the country. He also requested the bank to provide concessional loans to farmers in rural areas rather than urban areas.

Although the government has provided funds to banks for the purpose of providing subsidized loans for farmers, both banks have not provided the exact data of how many people have benefited from it, so they have a problem Krishna Mainali, the secretary of the ministry said. According to him, although the ministry separates the budget for the rural farmers and sends it to the bank every year, the details of the farmers who have taken loans from the Agricultural Development Bank and the amount recovered from the loans are not filed in the ministry.

We have to make a plan in the coming days based on the credit flow situation and the details of the benefited farmers. However, there was a problem in making plans because there was no information on this matter,' said Secretary Mainali.