Kathmandu. The Department of Cooperatives has decided to determine the lending rates for the saving and credit cooperatives in the nation. The cooperatives in Nepal have been haphazardly charging excessive rates on the loans that they hand out. On August 4, 2019, the maximum interest rate on loans given out was decided to be 16% but it has now been revised and put at 14.75%.

The Nepal Cooperative Journalist Society on Wednesday organized a virtual conference on Wednesday saying that cooperatives are charging a large sum putting several people in debts, with incredibly burdensome loans. Dr. Tok Raj Pandey, the registrar of the society, stated that “ the Cooperative Act allows the registrar to allocate certain percentage for service charge. We’ll decide upon that soon.”

Cooperatives have been charging people on differing rates between 1-5%. In the year 2068 B.S., there was a provision that cooperatives could no longer charge more than 1%, however, the decision was not implemented effectively. Pandey said that he would appeal to the council of ministers to implement the Cooperatives Act of 2074 with immediate effect. 

Minraj Kadel, the Chairman of the National Cooperative Federation, speaking on the occasion, mentioned that the market is constantly fluctuating and the interest rates should be set according to it.