Kathmandu. The possibility of getting the loans of the microfinance victims protesting because they cannot pay the microfinance loans has increased. This possibility has become strong after the discussions of the National Bank and microfinance operators have progressed in that direction.

After the microfinance operators reached the Rashtra Bank with the question of what to do with the borrowers who are unable to pay the loans, the Central Bank has also prepared to work with a new way of thinking. The Small Finance Financial Institutions Supervision Department of Nepal Rastra Bank has come up with the idea of waiving off loans to borrowers who cannot pay their loans.

Rewati Prasad Nepal, Head of Microfinance Financial Institution Supervision Department, said that preparations are being made to waive the loans of borrowers who cannot pay after looking at the borrower's condition. However, the method and process of loan waiver and how to manage its resources have not yet been decided. He said, "Indeed, preparations are being made to waive the debts of the debtors who have fallen under the marka." The government gives relief for loan waiver, whether it is from the microfinance fund, depending on the condition of the loan.

Some borrowers, who have already taken loans from many institutions, are taking to the street protesting that they cannot repay the loans they have taken. However, Nepal, who is also the executive director of Rashtra Bank, said that the loan will not be waived just because of the protest. He said, "Now, an atmosphere is being created that one does not have to pay the loan after coming to the streets and raising slogans." There is no such thing as loan waiver depending on protest. In addition to this, there is no provision for exemption for borrowers who cannot repay the loan by investing in unproductive sectors.

According to him, the National Bank will facilitate the borrowers who are unable to pay their debts and who have taken loans to start their own business. Nepal informed that they are going to make arrangements to waive the loan to some, extend the time to pay the loan to some, and there are some debtors whose industrial business has sunk due to the previous loan, and the related organization should do the work of operating that business by giving them a new loan.

More money has been given than the capacity of the debtor. The association is also discussing with Nepal Rastra Bank what to do for the borrowers who have taken more loans than their capacity. For this, microfinance institutions themselves will have to separate the categories of borrowers as to how to collect their money. The National Bank has also given instructions to sit and discuss the situation of the divided borrowers and how to move forward.

According to the new guidelines issued by the National Bank for Microfinance, 'One Borrower, One Institution' is being implemented. According to the new regulations of the National Bank, borrowers who have taken loans from any bank will no longer get loans from microfinance companies. Also, they cannot take loans from more than one microfinance company. Borrowers who have taken loans from commercial banks, development banks and finance companies will not be eligible to take loans from microfinance institutions.