The ANNFSU said such loan facility with a guarantee of repayment through educational certificate would help in alleviate unemployment rate among educated lot.

"The government should provide no interest loans with certificates as collateral for the development of entrepreneurship and employment," said ANNFSU Chairman Kishor Bikram Malla, talking to eKantipur, "The state should create an environment to provide loans to Nepali students for commercial activity."

ANNFSU Chairman said the proposal of student loan was forwarded only after extensive study and investigation. "We have studied the situation and psychology of Nepali students," he said, "If the state wants, a working mechanism could be set up to complete it."

The UML student wing has demanded the state provide interest-free loans of Rs 500,000 for certificate level students, Rs 700,000 for graduate level and Rs 1 million for post- graduate level.

Chairman Malla further informed that discussions will be initiated with the government and government and private banks about its demands.