Credit limit Increased for women entrepreneurs - Nepalee.Com

Credit limit Increased for women entrepreneurs

Nepalese Business women
Women Entrepreneurship Development Fund has increased to half a million rupees from 300 thousand in Nepal and decreased the interest rate to 6 percent only by Ministry of Economy.

13 December 2014 KATHMANDU – A Government Initiation to empower Nepalese women Entrepreneurship has taken its height further more as government has decided to increase the amount of cash they can lend and reduced the interest rates, which is impacting highly to the rural people to start small and cottage industry by women professionals who were lack of fund in the past.
The Women Entrepreneurship Development Fund has increased the credit limit for women entrepreneurs. They can now borrow up to Rs 500,000, up from Rs 300,000 earlier.

The fund created under the Ministry of Industry has been implemented to help women entrepreneurs short on cash and provide collateral-free loans at minimal interest rates to aspiring start-up businesswomen.

The ministry said in a press statement that it had also slashed the rate of interest on loans to 6 percent from 10 percent. Moreover, borrowers who repay the principal and make interest payments at the stipulated time will get an additional 1 percent discount on the interest rate.

Likewise, the government has extended the maturity period of the loans to three years from the existing two years. A decision to this effect was taken by a meeting presided over by Industry Minister Mahesh Basnet.

The meeting of the Central Fund Operation and Management Committee has also decided to implement the fund in 10 districts, namely Khotang, Makwanpur, Kathmandu, Lalitpur, Bhaktapur, Baglung, Pyuthan, Kalikot, Bajura and Kailali.

The fund will be implemented by the Department of Cottage and Small Industries under the ministry in coordination with Rastriya Banijya Bank.

In Many cases such program were a failure as political motivation and using of fund in different sector than targeted areas were observed in the past, however women in the business are more successful and hope recent move by the ministry would change the lives of many in the rural Nepal.

Source: KOL

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