Rastriya Swatantra Party MP Ganesh Parajuli Highlights State's Failure in Addressing Loan Sharking
Summary
Rastriya Swatantra Party MP Ganesh Parajuli highlighted the state's failure in addressing unfair lending practices, emphasizing the need to update laws regulating personal loans to protect citizens from loan sharks.
Key Points
- RSP MP Ganesh Parajuli pointed out the prevalence of usury and unfair lending in Nepali society in the House of Representatives.
- Existing laws like the Some Nepal Laws Amendment Act, 2080 and sections 478 to 481 of the Civil Code, 2074, are insufficient or poorly implemented against unfair lending.
- Banks and financial institutions lack reach across all state areas, forcing citizens to rely on personal loans often from loan sharks.
- MP Parajuli called for timely review and update of laws with clear legal standards and mandatory written promissory notes to protect borrowers.
