Kathmandu, July 6
The Procedures for Providing
Collateral-Free Loans to Nepali migrant workers has reached its final stage,
Minister for Labour Employment and Social Security Sharat Singh Bhandari
informed on Sunday.
Speaking at the final round of discussions to
finalise the draft of the procedures held at the Ministry of Labour, Employment
and Social Security (MoLESS), he said the procedure would enable workers to
access simple and collateral-free loans.
He expressed concern over Nepali workers
falling prey to exorbitant interest rates charged by loan sharks and stated
that once implemented, the procedure will enhance their access to finance.
“Of the three 'D's - Debt, Death, and
Digital Trap - that I often mention, this policy addresses the debt trap. Workers
will be debt-free by the time they return from working abroad, and will also be
able to benefit from state-arranged schemes such as social security and
insurance,” said Minister Bhandari.
According to him, the procedures align with
the government’s policy to offer unsecured loans to those going for foreign
employment. He suggested that priority should be given to banks affiliated with
the Social Security Fund.
“The key objective is to ensure that bank
loans are secure, migrant workers can access financing easily, and they are
protected from local loan sharks in their villages,” he said.
The procedure proposes that workers
travelling to Gulf countries should be eligible for loans of at least Rs.
200,000, while those heading to Europe may access up to Rs. 500,000.
Saurabh Pokharel, a member of the drafting
team from Nepal Rastra Bank, pledged full support for the implementation and
suggested refining the procedure to clarify the loan recovery process, informed
Minister's Secretariat in a statement.
Similarly, Anil Sharma from the Nepal
Bankers’ Association praised the concept and assured that banks would fully
cooperate in its implementation.
Labour Secretary Dr. Krishna Hari Pushkar
noted that the procedure had remained stalled for a long time and stressed the
need to move it forward without delay. He emphasised the importance of
providing easy and accessible loans so that migrant workers could manage
repayments more effectively upon returning from abroad.
Published in The Rising Nepal daily on 7 July 2025.
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