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List of Finance Companies in Nepal | Class C Banks
Finance Companies are smaller financial institutions that provide services mainly for individuals and small to medium-sized businesses. Finance Companies are classified as Class C institutions in Nepal. Their key services include:
- Personal Loans: Finance companies offer loans to individuals for personal needs such as education, home improvements, or emergencies.
- Small Business Loans: These companies cater to small businesses that require financing for growth, machinery, or other business-related needs.
- Savings Products: They offer savings accounts, fixed deposits, and other investment products.
Finance companies are significant for areas or sectors that may not have access to larger banks. They focus on serving smaller customers or specific industries that commercial banks typically underserve.
Finance companies are also regulated by Nepal Rastra Bank, which has less capital requirements than commercial and development banks. There are four types of banks categorized by Nepal Rastra Bank as follows:
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Class C – Finance Companies
List of Finance Companies in Nepal
As of mid-January 2025, there are 17 finance companies licensed by Nepal Rastra Bank. The table below is a list of all the finance companies along with their headquarters, paid-up capital, and website links.
| S.N | Finance Company Name | Headquarters | Paid-up Capital (NPR) | Website |
|---|---|---|---|---|
| 1 | Nepal Finance Ltd. | Kamaladi, Kathmandu | 838.9 million | nepalfinancelimited.com.np |
| 2 | Nepal Share Markets & Finance Ltd. | Ramshahapath, Kathmandu | 432.0 million | https://nsm.com.np/ |
| 3 | Goodwill Finance Ltd. | Hattisar, Kathmandu | 946.1 million | goodwillfinance.com.np |
| 4 | Progressive Finance Co. Ltd. | New Road, Kathmandu | 856.1 million | pfltd.com.np |
| 5 | Janaki Finance Co. Ltd. | Janakpurdham, Dhanusha | 690.4 million | jfcjanakpur.com |
| 6 | Pokhara Finance Ltd. | Pokhara, Kaski | 1.0825 billion | pokharafinance.com.np |
| 7 | Multipurpose Finance Co. Ltd. | Rajbiraj, Saptari | 610.2 million | multipurposefinance.com |
| 8 | Samriddhi Finance Company Ltd. | Hetauda, Makawanpur | 818.9 million | sfcl.com.np |
| 9 | Capital Merchant Banking & Finance Co. Ltd. | Battisputali, Kathmandu | 935.0 million | https://cmbfl.com.np/ |
| 10 | Guheshwori Merchant Banking & Finance Ltd. | Pulchowk, Lalitpur | 1.0121 billion | gmbf.com.np |
| 11 | ICFC Finance Ltd. | Bhatbhateni, Kathmandu | 1.1834 billion | icfcbank.com |
| 12 | Manjushree Financial Institution Ltd. | Nayabaneshwor, Kathmandu | 1.3516 billion | manjushreefinance.com.np |
| 13 | Reliance Finance Ltd. | Pradarsani Marg, Kathmandu | 1.1214 billion | reliancenepal.com.np |
| 14 | Gorkhas Finance Ltd. | Dillibazar, Kathmandu | 867.9 million | gurkhasfinance.com.np |
| 15 | Shree Investment & Finance Co. Ltd. | Dillibazar, Kathmandu | 981.6 million | shreefinance.com.np |
| 16 | Central Finance Ltd. | Kupondole, Lalitpur | 948.8 million | centralfinance.com.np |
| 17 | Best Finance Ltd. | Chabahil, Kathmandu | 854.8 million | bestfinance.com.np |
Capital Requirements of the Finance Companies in Nepal
To ensure financial stability and protect depositors, NRB has set specific capital requirements that these finance companies must meet.
Minimum Paid-Up Capital Requirements
NRB mandates the following minimum paid-up capital for finance companies:
- National-Level Finance Companies: NPR 800 million
- Finance Companies Operating in 1 to 3 Districts: NPR 400 million.
These capital thresholds are designed to ensure that finance companies have a solid financial foundation to support their operations and absorb potential losses.
Capital Adequacy Ratios
In addition to the paid-up capital, finance companies must adhere to capital adequacy ratios as per the NRB’s Capital Adequacy Framework:
- Core Capital (Tier 1) Ratio: Minimum of 6% of risk-weighted assets
- Total Capital Adequacy Ratio (CAR): Minimum of 10% of risk-weighted assets, including both Tier 1 and Tier 2 capital
These ratios help ensure that finance companies can withstand financial stress and continue to operate effectively.
By meeting these capital requirements, finance companies in Nepal contribute to the overall health and stability of the country’s financial system.