Muktinath Bikas Bank has signed a Memorandum of Understanding (MoU) with the Federation of Transporter-Nepal (FTN) to expand financing access for businesses involved in the transportation sector.

Under the agreement, FTN members can obtain loans from Muktinath Bikas Bank to purchase vehicles of any brand required for transportation services, as well as financing for their broader business needs.

The bank will provide these facilities through its 176 branches, with the partnership offering concessional interest rates to eligible transport entrepreneurs.

The agreement is aimed at making financing more accessible to transport businesses and supporting their expansion and service capacity. The bank has also introduced special lending schemes at minimum interest rates for auto, agriculture and SME loans.

The MoU was signed by Tara Manandhar, CEO of Muktinath Bikas Bank, and Madhav Prasad Nepal, President of the Federation of Transporter-Nepal.

For transport businesses, easier access to vehicle and working-capital financing could help them expand fleets, replace older vehicles and increase operating capacity without relying entirely on internal funds.