Finance Minister Alexander Chikwanda said that this was to allow commercial banks have sufficient funds available to lend to productive sectors of the economy.
Mr Chikwanda said that government also wanted to reduce the current high interest rates that commercial banks are charging.
He noted that the high cost of doing business in Zambia has also been triggered by high interest rates.
Mr.Chikwanda said that this has hampered the Small Medium Enterprise -SME- sector to access affordable funding to grow their businesses.
The Minister was speaking during the commission of National Savings and Credit Bank NATSAVE Nchelenge branch in Nchelenge district.
Mr Chikwanda praised NATSAVE for assisting farmers in the district through loan facilities.
He said Luapula province needs to transform from fishing to promoting Agriculture.
At the same function NATSAVE Managing Director Cephas Chabu said the Nchelenge branch held a saving deposit of 7 point 5 million Kwacha as at 31st October 2015.
Mr. Chabu said the branch has given out K4.9 million worth of loans to 698 people in the community.
And Nchelenge Member of Parliament Raymond Mpundu thanked government for rolling out banking services into rural areas.
Mr Mpundu said the establishment of a bank in the district will boost economic activities in the area.
And Luapula Province Minister Benson Kapaya said the province is posed for further economic growth due to a number of developmental activities that government has embarked on.