Rastriya Banijya Bank (RBB) has introduced a ‘Province Specific Agro Loan’ product this week (September 30, 2024) under its ‘One Province, One Special Program’. The product focuses on developing the agriculture sector across all the provinces of the country by providing it with the needed capital.
Based on the special agricultural produce of each province, the bank will provide loans up to NRs 50 million rupees. These products identified under each province are:
Bagmati: Poultry
Gandaki: Fruits
Karnali: Medicinal Herbs
Koshi: Cardamom
Lumbini: Livestock farming
Madhesh: Fish
Sudurpaschim: Banana
Only legally registered firms or companies in the agriculture sector run by agro entrepreneurs between the ages of 18 and 65 can apply for the loan facility.
Loans will be provided for a maximum of 10 years, and the interest rate will be determined by adding a premium of 0.5% to the base rate. The bank will loan up to 70 percent of the net trading assets. The project undertaken by the client will serve as the collateral, while fixed assets such as land and buildings will be sought if required. The client will have to cover its project through insurance.
Applications for the province-specific agro loans can be made through all the branches of the bank across the country. RBB operates 294 branches spread across 77 districts of the country.
