Credit for Meat/Dairy and Vegetable Production

In order to promote animal farming of small farmers in to commercialized animal husbandry and provide a foundation for perennial source of income for small farmers and ultimately to lead to self-dependency of nation on animal based agro products, the financial institution has been implementing this program with financial support of government of Nepal since FY 2010/11. Farmers have to pay back the credit within 3 years from the date of borrowing the loan by paying monthly interest and quarterly installment of principal. Farmers have to start installment payment from 9th month's end. For timely payment of interest and principal, the bank can't charge to SFACLS more than 5% interest per annum and SFACLs can't charge farmers more than 9% interest on this loan.

The program had been implemented as livestock for meat before FY 2014/15. Since 2014/15, it is being implemented as livestock program for meat and milk by widening the scope of previous year's livestock credit program for meat. 

By the end of July, 2019, approximately 125 thousand members received the loan and NRs. 13.73 billion of credit had been invested across 470 SFACLs from 69 districts.

The distribution of investments is shown in the graphic below:

  (In NRS million)

 The government has continually supported, and coordinated with, SFACLs and institutions associated with SKBBL. 

As well, to access credit easier and increase meat and milk production faster, community-based livestock insurance is now available with veterinary and technical benefits to farmers, who are members of SFACLs. Government has recently supported in lending vegetable production as well.