13th March 2025, Kathmandu
The Deposit and Credit Guarantee Fund (DCGF) and Agni Hire Purchase Pvt. Ltd. have signed a credit guarantee agreement. The partnership aims to support small and medium enterprises (SMEs) in transportation and agriculture.
DCGF Agni Hire SME Loan
Key Details of the Agreement
Under the agreement, DCGF will guarantee loans up to NPR 30 million for transportation-related businesses and NPR 30 million for agricultural tools and equipment. These loans target self-employment and business development initiatives.
If the guaranteed loans become unrecoverable, Agni Hire Purchase can claim up to 80% of the outstanding amount from DCGF. This provision ensures financial security for both parties.
Signing Ceremony Highlights
Mr. Ramesh Ghimire, CEO of DCGF, and Mr. Arun Raj Upadhyay, General Manager of Agni Hire Purchase, signed the agreement. Senior officials from both organizations attended the event.
Boosting Economic Growth
The agreement encourages banks and financial institutions to support SMEs and agricultural ventures. Young entrepreneurs in these sectors will now find it easier to access loans for business development.
Alignment with Regulations
The partnership aligns with the Credit Guarantee Regulations, 2018. These regulations allow credit guarantees under specific categories, promoting economic growth.
Agni Hire Purchase’s Role
Agni Hire Purchase has been actively promoting self-employment and business development. The collaboration with DCGF will strengthen its efforts to support entrepreneurs in key sectors.
Commitment to Development
The agreement highlights the importance of credit guarantees in fostering economic development. It also underscores the commitment of both organizations to support Nepal’s growing SME and agricultural sectors.
Impact on Entrepreneurs
Young entrepreneurs in transportation and agriculture will benefit from easier access to loans. This initiative will help them start or expand their businesses, contributing to economic growth.
Future Prospects
The partnership between DCGF and Agni Hire Purchase sets a precedent for other financial institutions. It encourages them to support SMEs and agricultural ventures, fostering a more robust economy.
Conclusion
The agreement marks a significant step in promoting self-employment and business development in Nepal. It highlights the importance of collaboration between financial institutions and government bodies.
For more: DCGF Agni Hire SME Loan