Businessmen in Janakpur have taken to the streets against an increase in interest rates by banks and financial institutions.

A group of businessmen led by the Janakpurdham Chamber of Commerce and Industry, protested on Thursday, carrying placards with slogans– “Maintain stable interest rates” and “Limit interest rates to a single digit” among others.

They also submitted a memorandum to Madhesh Province Finance Ministry through the Chief District Officer.

Jitendra Kumar Mahaseth, president of Janakpurdham Chamber of Commerce and Industry, said they resorted to agitation as the businesses are on the brink of closure as financial institutions have been charging interest rates "exorbitantly".

Mahaseth said their 12 points demands mentioned in the memorandum include limiting interest rates to a single digit and allowing banks to charge an additional premium as per risks being based on spread rate.

Likewise, the demands include making banks roll back the increase in the service fee, loan approval fee and LC negotiation fee to make it the same as the previous year.

Of late, businessmen in different parts of the country have staged protests against the banks and financial institutions denouncing an increase in interest rates.

Last Friday, demonstrators associated with Kathmandu, Bhaktapur and Lalitpur chapters of the Federation of Nepalese Chambers of Commerce and Industry, Nepal Wool Felt Producer's and Exporter's Association and Woolen Felt Producers and Exporters Association among others staged a sit-in at Maitighar Mandala in Kathmandu claiming that banks and financial institutions have been charging interest rates exorbitantly.

Businessmen said they have been hit hard as banks have increased the interest rates three times in the past year. Banks, however, have been defending the moves saying rising interest rates is a global phenomenon.