Minister urges Nepal Rastra Bank to simplify agricultural loans for small farmers

Minister for Agriculture and Livestock Development, Ramnath Adhikari, has asked Nepal Rastra Bank to make it easier for small farmers to get agricultural loans.

In a meeting with the Central Bank Governor, Dr. Bishwanath Poudel, Minister Adhikari said that banks and financial institutions have a big role in reducing poverty through agriculture.

“I ask Nepal Rastra Bank to make sure that agricultural loans are actually being used for farming,” the Minister said.

He highlighted the need to ensure loans go to the right people and are not used for other purposes. He also urged government-owned banks to give more loans to the agriculture sector and to follow the central bank’s rules on agricultural lending.

In response, Governor Poudel agreed that misuse of agricultural loans is a serious concern and said that the central bank is also working on this issue.

He stressed that money given for agriculture must bring real results, especially in commercial farming, where profits have been low.

Based on his visits to several districts, Governor Poudel shared a common complaint: “Real farmers working in the fields are not getting loans, while people just doing paperwork are.”

He said this unfair system needs to change so that true farmers can get the financial support they need.