A bank in Pokhara is said to be the first in Nepal to provide collateral-free loans to people to get a piped water supply connection. All the bank requires is consent from the neighbours.
Kamana Development Bank is providing loans to the poor consumers of Lekhnath municipality who can not afford to get a water supply connection on their own. “We are providing a facility to those who cannot afford for pipeline connection at once,” said Umesh Acharya, Chief Executive Officer of the bank, adding, “We do not ask for any collateral, but we only need consent of the neighbours.”
Lekhnath Small Town Water Supply Project is charging Rs. 15,100 [US$ 200] for a new pipeline connection and the bank is providing loan facility to the people who cannot pay the total cost at once. According to Acharya, the bank is providing a 2-year loan covering 80 percent of the total connection cost.
Interest rates, according to the bank’s website, are 15-19%.
Chandra Krishna Karmacharya, president, Water Supply Consumers Committee said, “With this kind of facility, people will not have to be deprived of drinking water just because of financial problem.”
Source : Kantipur / NGO Forum, 25 Jul 2010