Kathmandu, July 17: Sakchyam: Access to Finance have organized awareness programs in Dhading and Gorkha targeting the earthquake beneficiaries who have not been able to reconstruct their houses due to financial constraint.
Procedures for the subsidized loan, required documents and the terms of the loan were discussed during the program.
Speaking at the function, Deputy Mayor of Neelkantha Municipality in Dhading Manraj Bhandari said the awareness program on subsidized loan for the beneficiaries is very positive, although it was late.
He also expressed commitment that the municipality would provide full support to avail the loans for these beneficiaries who have not been able to reconstruct their houses. Altogether 1,803 beneficiaries in Neelkantha municipality have not started the house reconstruction process even after taking the first tranche.
Chief of Foreign Assistance Coordination Section of the National Reconstruction Authority (NRA) Dibya Raj Pokhrel presented the theoretical and practical aspects of the subsidized loan at the program.
The beneficiaries who have not been able to reconstruct their private houses even after taking the first tranche of Rs. 50,000 can now take a loan of up to Rs. 300,000. Such facility is provided under the Integrated Guideline on Interest Exemption for Subsidized Loan approved by the government last year.
Sakchyam has started working in Neelkantha Municipality, Jwalamukhi Rural Municipality and Dhunibesi Rural Municipality with an objective to facilitate beneficiaries who have not been able to construct their houses due to financial constraint.
Altogether 11,600 beneficiaries in Dhading have not started constructing their houses even after taking the first tranche of the government grant.
Chief of District Coordination Committee, Dhading Jagannath Nepal chaired the awareness program. Chief Administrative Officer of Neelkantha Municipality Tirtha Raj Paudel and Chief of District Level Project Implementation Unit (Grants Management and Local Infrastructure) Jayram Shrestha were present at the program.
Likewise, ward chairs of all 14 wards of Neelkantha Municipality, District Branch Managers and representatives of all banks, chiefs and representatives of various organizations working in reconstruction sector, local beneficiaries and journalists were also present at the function.
Similarly, awareness programs were conducted in Gorkha Municipality, Shahid Lakhan Rural Municipality and Palungtar Municipality of Gorkha on July 1, 2, and 3 respectively.
Dibya Raj Pokharel, Chief of Foreign Assistance Coordination Section at the NRA, had presented about the theoretical aspects of the subsidized loan scheme introduced for earthquake survivors who had signed grants agreement with the government, but had not been able to construct their houses due to financial constraint. "The beneficiaries who have not started house reconstruction due to financial constraint can get a loan of up to Rs. 300,000 in a subsidized interest rate."
Banking Coordination Expert at the NRA Namita Paudel informed the participants about the process and documents required to receive the subsidized loan.
Chief of the Housing Reconstruction Project of Sakchyam Bibhu Prasad Aryal highlighted the importance of subsidized loan and financial literacy to the beneficiaries. Beneficiaries, elected representatives, representatives of local banks, journalists and locals were present at the function.
The Government provides interest subsidies on such loans and the relevant banks can take interest of no more than 2 percent more than their base rate. Banks and Financial Institutions (BFIs) cannot take any other interests or service charges in such loans. They can issue such loans for private house construction for earthquake survivors in collective or collateral security.