Kathmandu. Agriculture Development Bank (ADB) has been criticised for making auto loans cheaper targeting the NADA Auto Show 2025. The bank, which has set up stalls at the auto show, has given the lowest interest rate on auto loans. Customers have also criticized the bank for reducing the interest rate on auto loans by not reducing the interest rate on agricultural loans.
Agriculture Development Bank (ADB) has announced auto loan at an interest rate of 6.23 per cent. The bank has fixed this interest rate by adding a premium of 0.36 percent to the base rate of 5.87 percent. According to the bank, 33 percent discount has been given on 0.75 percent processing fee of the loan.
Customers have also complained that the Agricultural Development Bank has made vehicle loans cheaper by going beyond the objective of not reducing the interest rate on agricultural loans. They believe that this is an insult to farmers and agriculture. “It is an insult to the farmers of Nepal to offer the cheapest loan on higher purchase by naming it Agriculture Development Bank,” wrote a social media user.
Chintamani Sharma Poudel wrote on Facebook, “Nepal is the only country where the interest rate on loans from other sectors is cheaper than the loans given to the agricultural sector.” Another user wrote, “What could be more ironic than this? The name is Agricultural Development Bank, the work is towards vehicle loans. ’
The bank has been charging interest on agriculture and related loans by adding up to 2 percent to the base rate. In this, the bank makes the maximum number of interest rates. However, on auto loans, the bank has fixed the interest rate by adding a premium of 0.36 percent to the base rate. The bank’s base rate is 5.87 percent.
This is not the first time that the Agriculture Development Bank has gone beyond its purpose. In the past, the bank has been giving priority to other sectors rather than agriculture. Customer dissatisfaction with the bank is also increasing for the same reason.
The bank, which has an image of a bank working for farmers, has lately become known as a bank that works for others and not for farmers and farmers. Ram Sharan Pudasaini is the chairman and Govinda Gurung is the chief executive officer of the bank.
Although the bank’s slogan is a bank of choice for common prosperity, the bank does not seem to be working for prosperity. The bank, which holds a 51 per cent stake in the government, has been working by misleading the regulatory bodies, according to the interest rate fixed by the bank at the NADA Auto Show. The general public holds 49 per cent stake in the bank.
Earlier, agriculture development was found to be grossly negligent in complying with compliance. It was found that the bank’s top management did not freeze the accounts of about a dozen blacklisted people as per the directives of the Rastra Bank. It was found that the accounts of the designated persons were not frozen ignoring the instructions given by the top management of the Agricultural Development Bank despite the directives given by the Rastra Bank.
