KATHMANDU: The cooperatives have been permitted to take only one percent additional fee while providing loans.

The Department of Cooperatives has taken this decision to be effective from the upcoming 4 January 2020.

The department fixed this provision as cooperatives were reportedly taking additional charges in the name of service charges and others.

According to the Department’s official Shova Ghimire, the meeting held on Monday took this decision. Similarly, the cooperatives could not charge over a 14.75 percent interest rate in their loan investment.

However, the cooperatives could charge a 1.5 percent additional charge on loan investment on the basis of collective guarantee through creating groups.