KATHMANDU: The Finance Committee under the House of Representatives convened on Sunday at Singha Durbar to deliberate on the proposed amendments to the Secured Transactions Act, 2006.
The session included a clause-by-clause discussion of the bill following a review of proposed amendments submitted by lawmakers.
During the meeting, lawmakers highlighted the need for clear provisions in the bill regarding the use of movable, immovable, and intangible assets as collateral.
Barshaman Pun suggested that the provision allowing loans against educational certificates required further debate. He also remarked that it was unnecessary to repeatedly incorporate the term “socialist-oriented” into all legislation, as it is already enshrined in the constitution.
Dr Prakash Sharan Mahat opposed including the provision for loans based on educational certificates in the law, emphasizing its potential impracticality.
Similarly, Padam Giri expressed concern that interpreting educational and skill certificates as movable assets might complicate loan recovery processes, creating additional challenges for financial institutions.
The proposed bill, which was initially registered by the Ministry of Finance in the National Assembly on February 16, seeks to expand the range of assets that can be pledged as collateral for loans. It allows banks and financial institutions to accept movable assets besides land and houses.
Six lawmakers submitted proposed amendments to the bill, which aims to enhance financial inclusivity by enabling broader access to credit.
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