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BFIs Increasingly Lending to Black Cardamom Farmers

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BFIs Increasingly Lending to Black Cardamom Farmers
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May 9: Banks and financial and Institutions (BFIs) have shown a keen interest in providing loans to black cardamom farmers in recent years as their investments give good returns with little effort. Farmers have been attracted to cardamom farming, which yields as much as six quintals of the cash crop per hectare of land. They can earn up to Rs 1.1 million from six quintals of black cardamom.

In the last 22 years, Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd alone has provided loans totaling Rs 180 million to 875 farmers from various parts of the country. These farmers have invested a total of Rs 250 million in black cardamom farming over these years.

The microfinance company which started providing loans to black cardamom farmers in Ilam about two decades ago has expanded its services to Dolakha and Ramechhap districts for the last seven years.

According to Krishna Prasad Lamichhane, general manager of the finance company, they have already recovered Rs 150 million. He said that the company borrows from commercial banks at 12 to 13 percent interest rate and lends the money back to the farmers by keeping an interest margin of three percent.

Other BFIs such as Sana Kisan Krishi Sahakari Sanstha, various commercial banks, development banks and finance companies, too, have started providing loans to black cardamom farmers of late.

 

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