| NAEF Bank of Kathmandu MOU Signed |
| |
In January 2007 NAEF
and BoK finalized an MOU that will further BoK's intrance
into rural / farmer credit lending. This culmination began
as a visit to Rupandehi District, by BoK Board Members
and staff led by NAEF to explore the possibilities of
getting BoK and other private sector banks invloved in
providing mezzo-credit to small and poor entrepreneural
farmers. NAEF found that though many small farmers are
very interested in using or technolgoies and becoming
small businesses/service providers they lack the ability
to get funding through existing credit agencies. Rural
micro-credit agencies provide funds up to 600 USD (less
than 50% needed for a two-wheel tractor and accesssories)
and larger urban based banks either don't lend in the
rural areas or have no interest in the the mezzo-credit
(less than 2000 USD). The MOU, basically a test marketing
of mezzo-credit loans, allows NAEF in the next two years
to privide 20 loans NAEF small farmers for our agro-machinery
technologies. BoK will provide 66% of the loan and NAEF
will fund 33%.
• BOK
Homepage
|
