Laxmi Bank has expanded its ´low cost housing´ service to Pokhara encouraged by its implementation in Tansen municipality.

Issuing a statement on Thursday, the bank said it signed an agreement with Lumanti, a non-governmental organization working in urban sectors and Pokhara sub-metropolitan city, to implement the program.

"The program extends loans of up to Rs 400,000 to each individual. A committee comprising representatives of the bank, Lumanti and the sub-metropolitan city office along with stakeholders, has been formed to oversee and manage the project," the bank said.

According to the statement, the committee will also be responsible for verifying the identity and profile of loan applicants before forwarding a recommendation to the bank. "The bank will then carry out due diligence based on its credit standards and criteria," the statement says.

The bank started the project, which it expects to cover around 100 deprived families, was started in December 2012. "The bank is confident that this project will be supportive in boosting the confidence of low income families," reads the statement.

source: republica,7 march 2013