Rastriya Banijya Bank Limited (RBBL) and the Deposit and Credit Guarantee Fund have signed an agreement to launch an individual agricultural credit guarantee scheme aimed at expanding access to agricultural financing.

The agreement was signed at the Fund’s office in Tangal, Kathmandu, by RBBL CEO Devendra Raman Khanal and Deposit and Credit Guarantee Fund CEO Dila Ram Giri on Bhadra 18, 2083.

Under the scheme, agricultural loans will be provided across nine local levels in Kavrepalanchok, Jumla, Surkhet, Bajura and Kailali.

The scheme will operate for two years, with up to Rs. 8 crore allocated for investment in each participating local level.

Individual borrowers will be eligible for loans ranging from Rs. 250,000 to Rs. 3 crore, with a maximum repayment period of seven years.

A total Rs. 30 crore guarantee fund will be established to support the scheme. Of this amount, Rs. 10.5 crore will be contributed by the Deposit and Credit Guarantee Fund, Rs. 4.5 crore by the participating local levels and Rs. 15 crore by the UN Joint SDG Fund.

The initiative is intended to make agricultural financing more accessible while encouraging investment in agriculture and related businesses across the participating areas.

According to the agreement, the scheme aims to promote entrepreneurship, increase agricultural productivity, strengthen food security and create employment in the selected local levels.

The partnership between RBBL and the Deposit and Credit Guarantee Fund is expected to provide a structured credit guarantee mechanism for agricultural borrowers and support greater access to financing in the targeted areas.