Cooperatives Not Allowed To Charge More Than 14.75 Percent Interest
September 22, 2020 | Investopaper
The government has fixed the interest rate so that the cooperatives will not be allowed to charge more than 14.75 percent on loans. The decision was taken by the Referral Interest Rate Determination and Recommendation Committee formed by the Department of Cooperatives with effect from Monday.
Article 51 of the Cooperatives Act, 2074 BS and Rule 23 of the Cooperatives Rules, 2075 BS stipulate that the maximum interest rate to be taken by the cooperatives on loan investment will be maximum of up to 14.75 percent. Dr. Tok Raj Pandey, Registrar of the Department of Cooperatives, informed that the reference interest rate has been fixed so that the difference between the interest rate of loan and savings is less than 6 percent.
The maximum interest rate on loans floated by cooperatives was fixed at 16 percent from Shrawan 19 last year. Reviewing the decision, the reference interest rate determination and recommendation committee has fixed the new interest rate.
