Rs 67 Crore Loan Defaulted from Youth and Small Entrepreneurs Self-Employment Fund

Kathmandu. Rs 67 crore 19 lakh 64 thousand has been identified as due for recovery from loans invested by the Youth and Small Entrepreneurs Self-Employment Fund.

The 63rd annual report of the Auditor General, 2083, has shown that according to the provision for loan investment in Rule 16 of the Youth and Small Entrepreneurs Self-Employment Fund (Concessional) Regulations, 2077, the amount including penalties needs to be recovered as the principal and interest were not paid on time as per the loan agreement between the fund and the borrowers.

There is a provision for a loan period of 42 months when a five-year investment agreement is made between the fund and the borrower, and an additional two percent interest on the amount if installments are not paid on time as per the agreement. As of the end of Ashad 2082, the principal outstanding loan from the fund was Rs 2 billion 33 crore 94 lakh 56 thousand.

Out of this, according to the fund's records, it has been mentioned in the report that Rs 57 crore 97 lakh 18 thousand principal and interest of Rs 8 crore 46 lakh 98 thousand and a penalty of Rs 23 lakh 82 thousand need to be recovered from 432 cooperative institutions.