Earthquake survivors in Hetauda have started applying for concessional loans nearly a year after the government announced the scheme. 

Last May, the government had declared that people who had lost their homes in the disaster could borrow money at 2 percent interest. 

Potential borrowers are required to produce a ‘red card’ issued by the government to obtain the soft loan. 

Michyau Tamang of Hetauda-9, Lamsuredhap became the first person from the district to receive a loan under the scheme on March 30. He has received the first instalment of Rs600,000 of his loan amounting to Rs1.5 million from Nepal Bank Limited. 

The April 25 earthquake last year had completely destroyed Tamang’s house which he had built in 1992. 

His family is currently living in a temporary shelter. After receiving the first instalment, he plans to construct a new home before the monsoon starts.

“The loan is still not enough to build a safe structure.” he said. However, he has other sources of funds. 

Tamang said that he had asked his migrant worker son to send some money to rebuild their home.  

Khadga Singh Moktan, manager of the bank, said Tamang was the first recipient of the government announced loan scheme in the district. “Despite a few hurdles, we were able to release the concessional loans to quake victims,” said Moktan. 

The regulation requiring the bank to make sure that the potential borrower does not own houses elsewhere in the country is impractical, he added. “It is difficult to ascertain that the victims do not own houses in other areas through the government mechanism.”  

The bank has coordinated with Hetauda Municipality while performing a credit analysis and asked the victims to reveal their property details themselves. 

Another victim, Shanta Gurung of Hetauda-2, Sanopokhari, has also applied for a concessional loan. The bank’s branch in Hetauda has forwarded Gurung’s application to its central office.  

The payback period of the concessional loan is 10 years. Borrowers are required to start repaying the loan and interest on a monthly basis after a year. The monthly payback instalment amounts to Rs15,188.

Loan applicants have to submit an earthquake victim certificate issued by the local authorities, collateral and income statement and a building permit to construct an earthquake-resistant structure. 

Under the scheme, banks are not allowed to impose extra fees or service charges to issue the loan.