BoK, Global IME launch invoice discounting service for rural farmers

Monday 16 February 2015 08:46 CET | News

Financial institutions Bank of Kathmandu (BoK) and Global IME Bank (GIBL) have unveiled the launch of two financial products to finance rural farmers of mid-western and far-western regions of Nepal.

The new products, launched in partnership with Sakchyam, a DFID-funded access to finance program, will help rural farmers to access loans ‘at lower interest rates’ as compared to borrowing from non-formal sector lending.

BoK and GIBL have launched ‘Bank of Kathmandu’s Sakchyam Sana Kisan Ukhu Karja Invoice Discounting’ and ‘GIBL Sakchyam Post-Harvest Financing Against Warehouse Receipt’, respectively. They aim to disburse loans to altogether 5,000 small-scale farmers.

Furthermore, BoK’s financial product launched in partnership with Mahakali Sugar Mills allows sugarcane farmers of mid-western region and far-western region to get loans of up to 75% of the value of canes they sell to the mill. The product is expected to benefit farmers who do not get paid instantly by the mill.

According to a press statement, BoK plans to disburse INR 290 million (USD 4.6 million) of loans to around 4,000 small-scale sugarcane farmers over a three-year period. Likewise, GIBL in partnership with Gyan Agri, a joint venture of KL Dugar Group and GIBL to provide warehouse and collateral management facility to farmers, will also float loans worth INR 290 million (USD 4.6 million) to rural farmers of mid-western and far-western region over four years.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: BoK, Bank of Kathmandu, Global IME, GIBL, financial, invoice, discounting, rural, farmers, Nepal, finance, Sakchyam, loans, lending, Mahakali Sugar Mills
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: World
This article is part of category

Banking & Fintech