Banks urged to increase access to finance for cottage, small firms

The small and cottage industries are still finding it hard to get financial access.

The participants in an interaction here today on 'Access to Finance in Cottage and Small Industries' organised by Federation of Nepal Cottage and Small Industries (FNCSI) complained that the banks have not been easier to access for finance though they have enough liquidity.

Even Agricultural Development Bank Nepal, Nepal Bank and Rastriya Banijya Bank have been extending only 6.4 per cent, 3.7 per cent and 4.4 per cent of their total lending, respectively, to cottage and small industries, they said, adding that they are the banks and financial institutions are charging high interest rates to cottage and small industries. "Banks offer car loan at nine per cent but charge 12 per cent for cottage and small industries,” they added, asking the banks and financial institutions to reduce the rate to eight per cent for small and cottage industries.