‘Bank interest should be increased only with the consent of both parties’

CPN (UML) Chair KP Sharma Oli has said that provisions should be made requiring the consent of both parties for increasing the bank interest rate.

Addressing the 7th National Convention of the Nepal Bank, Insurance and Financial Institutions Employees’ Association at the UML Central Office in Chyasal of Lalitpur today, he called for making provisions disallowing making changes in the bank interest rate without the agreement of both sides. The UML Chair charged that the banks have been increasing the interest unilaterally.

“The interest on loans taken from the bank reaches to 10, 12 and up to 14 percent, after some time, and when the borrower goes to the bank to repay the loan, the increased interest lands that person into problem,” he said.

He suggested changing the interest rate on the consent of both the lender and borrower, stressing that bank’s job is not only realizing the collateral and the loans.

Former Prime Minister Oli also called for monitoring whether the amount invested by the banks is properly utilized or not. He reiterated that the banks should support the development and they should provide loans to those people who are eager to start a venture from small capital.

Former Finance Minister Dr Yub Raj Khatiwada urged the government to put in efforts to improve the economy, as the economic situation is deteriorating.