February 23: Former Governor of Nepal Rastra Bank Deependra Bahadur Kshetry has said that loans should not be waived upon the request of any individual or group. He made such a comment at the financial literacy program organized by the Nepal Microfinance Bankers Association at the district headquarters of Gorkha on Tuesday.

Former Governor Kshetry praised the microfinance companies for providing services without increasing interest rate amid liquidity crisis in the banking system.

He said that if the debtor invest the loan according to the purpose for which the loan was taken, there will be no problem in paying the interest.

“There won’t be much problems if the loan is properly utilized. Both the loan investment institution and the debtor should be aware of proper utilization of the loan,” he said.

He requested the microfinance clients to utilize the loan properly and said that if the loan is misused, the investment will go down the drain. He emphasized that the members should be aware of the legal issues they will have to face.

Nabina Dhakal, deputy director of NRB's Gandaki provincial office, said that microfinance plays an important role in boosting the rural economy. Chief District Officer of Gorkha District, Dinesh Sagar Bhusal said that they customers of microfinance should establish themselves as disciplined members without spoiling the business. He said that they should seek legal remedies if microfinance acted against the policy.