December 6: Nabil Bank and One to Watch (OTW), an investment management company, have collaborated to provide interest-free and collateral-free loans to MSMEs under OTW COVID-19 MSME Fund Nepal.

Under this strategic partnership, Micro, Small and Medium Enterprises (MSMEs) with the potential to return to revenue against the COVID-19 induced recession shall be benefited by the collateral-free and interest-free loan to meet their short-term working capital and help them survive through the hardships and restrictions presented by COVID-19, reads a statement issued by the bank.

Apart from the loan, enterprises shall also receive technical assistance in the form of customized business advisory/development services enabling them to preserve business continuity and build resilience. 

According to Nabil Bank, MSMEs evaluated to have the potential to bounce back based on a pre-determined set of criteria shall get collateral-free loan from the bank and the interest amount shall be paid by the fund for a maximum period of 18 months.

Sujit Kumar Shakya, deputy CEO of Nabil Bank and Suman Joshi, managing director of One to Watch, signed the agreement amid a recent programme.

Speaking about the partnership, Anil Keshary Shah, CEO of Nabil Bank said, “Nabil Bank is always ready to support the MSME sector in Nepal, to help grow their businesses and surge ahead for long-term stability and overall economic growth of the country. We are very excited to collaborate with One to Watch in this effort to provide interest-free and collateral-free working capital loans to MSMEs affected by COVID-19 to assist in their survival through these tough times, enabling them to retain their teams and sustain their businesses.  Nabil Bank continues to be focused on promoting the MSME segment by bringing products and services that enable ease of access to finance to small entrepreneurs and businesses in this segment.”