The Fund will provide collateral-free loans to MSMEs that are evaluated to have the potential to bounce back based on a pre-determined set of criteria. It will pay interest on such loans for up to 18 months, and some of them will also be provided with business development support that are tailored to meet the needs of beneficiary enterprises.
“Micro, Small and Medium Enterprises are the backbone of Nepal’s economy. They employ a large share of the workforce and are drivers of innovation and new job creation. Their rebound, therefore, will set the foundation for overall economic recovery,” said Elisabeth von Capeller, Ambassador of Switzerland to Nepal.
Ajaya Bikram Shah, CEO of Laxmi Bank said he was hopeful the collaboration would directly benefit credit-worthy smaller entrepreneurs who require access to bank loans in order to sustain their businesses and livelihoods during an economy under stress.
“We believe that MSMEs need special attention and support at this point in time and this sector will play a key role in helping the economy revive and regain momentum over the medium and long term,” he said.
CEO of NMB Bank Sunil KC agreed that MSMEs are key drivers for sustainable growth of Nepal’s economy, but were also the most vulnerable and facing losses.
He added: “To support their revival plan, NMB is committed to providing collateral-free loans to those highly impacted by the current crisis.”