According to Surendra Raj Poudel, information office of Co-operative Department, pressure is being felt for reduction in interest rate of co-operative following the decline in interest rate of banks and microfinance companies.
“The co-operative sector is in pressure to bring the interest rate below the rate of microfinance companies,” he said adding “We are preparing to bring down the interest rate below the level of microfinance.”
Poudel informed that the nationwide co-operatives have make investment of nearly Rs 400 billion and loan extension of Rs 332 billion.
In the last FY, the government capped the interest rate at 16 percent for loans and 10 percent for deposits. However, lack of inspection and supervision allowed the co-operatives to collect rampant interest rate in the past years.
Although, the government tried to control the haphazard collection of the interest rate by the co-operatives, they could not be implemented strictly.
