Kathmandu. The Deposit and Credit Protection Fund has introduced the Micro Credit Additional Protection Scheme, 2082 with the objective of providing protection against loss of damage to micro-loans disbursed by banks and financial institutions due to the loss of the borrower’s death, disability or damage to the plan.
The fund unveiled the scheme amidst a programme held in Bhaktapur today. Chief Executive Officers of ‘A’, ‘B’, ‘C’ and ‘D’ categories of banks and financial institutions, Deputy CHIEF Executive Officers and heads and representatives of micro-credit departments of the institutions were present on the occasion.
The additional protection scheme announced by the Fund will protect loans up to Rs 1 million under the fund’s current security program. The scheme provides for payment of 100 per cent of the remaining loan in case of death of the borrower and his spouse, permanent disability or destruction of the project.
Banks and financial institutions that subscribe to the scheme will have to pay an additional security fee of 0.15 percent on the regular security fee. The fund expects banks and financial institutions not to take the hassle of making arrangements for collateral of movable and immovable property and other security arrangements to protect the loan by securing the institutional loans disbursed to micro, small and medium enterprises businesses.
