List of Microfinance Financial Institutions in Nepal | Class D Banks

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List of Microfinance Financial Institutions in Nepal | Class D Banks

Microfinance institutions (MFIs) focus on providing financial services to the rural population and low-income individuals who do not have access to mainstream banking.

As of December 2024, the Nepal Rastra Bank (NRB) has licensed 52 Class ‘D’ Microfinance Financial Institutions (MFIs) in Nepal. Out of these, 51 are currently operational, while one Super Laghubitta Bittiya Sanstha has been declared problematic by the NRB, i.e., Central Bank of Nepal, and is undergoing a resolution process. Their primary services include:

  • Small Loans: They provide small loans to help people start small businesses or improve their living standards.
  • Savings Products: They offer savings accounts that help low-income individuals save for the future.
  • Financial Inclusion: MFIs aim to bring financial services to marginalized or underserved groups, including women, rural farmers, and small traders.

MFIs play a crucial role in poverty reduction and economic empowerment, especially in rural areas where traditional banking services may be unavailable.

Microfinance companies are also regulated by Nepal Rastra Bank, which requires less capital compared to commercial banks, development banks, and finance companies. Nepal Rastra Bank has classified banks into four categories as follows:

  1. Class A – Commercial Banks

  2. Class B – Development Banks

  3. Class C – Finance Companies

  4. Class D – Microfinance Institutions

List of Microfinance Financial Institutions in Nepal

As of December 2024, There are total of 52 Class ‘D’ Microfinance Institutions licensed by Nepal Rastra Bank. Out of these, 51 are currently operational, while 1 institution, Super Laghubitta Bittiya Sanstha has been declared problematic and is under the resolution process.

S.N Institution Name Headquarters Working Area Paid-up Capital (NPR)
1 Aatmanirbhar Laghubitta Ghorahi, Dang Lumbini Province रु 7.83 Crore
2 Aviyan Laghubitta Panauti, Kavrepalanchowk National रु 25 Crore
3 Aarambha Chautari Laghubitta Banepa, Kavrepalanchowk National रु 36.71 Crore
4 Asha Laghubitta Madanpur, Nuwakot National रु 73.30 Crore
5 Chhimek Laghubitta Mid-Baneshwor, Kathmandu National रु 321.53 Crore
6 CYC Nepal Laghubitta Pokhara, Kaski National रु 26.64 Crore
7 Deprosc Laghubitta Bharatpur, Chitwan National रु 170.62 Crore
8 Dhaulagiri Laghubitta Baglung Bazar, Baglung National रु 13.31 Crore
9 First Microfinance Laghubitta Gyaneswar, Kathmandu Wholesale Banking रु 134.49 Crore
10 Forward Laghubitta Duhabi, Sunsari National रु 119.6 Crore
11 Ganapati Laghubitta Suklagandaki, Tanahu National रु 15.15 Crore
12 Global IME Laghubitta Pokhara, Kaski National रु 61.89 Crore
13 Grameen Bikas Laghubitta Butwal, Rupandehi National रु 98.25 Crore
14 Gurans Laghubitta Dhankuta Bazar, Dhankuta Koshi Province रु 10.14 Crore
15 Himalayan Laghubitta Chabahil, Kathmandu National रु 31.98 Crore
16 Infinity Laghubitta Gaidakot, Nawalparasi National रु 49.74 Crore
17 Jeevan Bikas Laghubitta Katahari, Morang National रु 134.75 Crore
18 Janautthan Samudayik Laghubitta Butwal, Rupandehi National रु 17.01 Crore
19 Kalika Laghubitta Pokhara, Kaski National रु 40.77 Crore
20 Laxmi Laghubitta Maharajgunj, Kathmandu National रु 44.17 Crore
21 Mahila Laghubitta Banepa, Kavrepalanchowk National रु 21.76 Crore
22 Mahuli Laghubitta Bakdhuwa, Saptari National रु 36.99 Crore
23 Manushi Laghubitta Banepa, Kavrepalanchowk National रु 10.94 Crore
24 Matribhumi Laghubitta Budanilkantha, Kathmandu National रु 62.84 Crore
25 Mero Microfinance Laghubitta Battar, Nuwakot National रु 132 Crore
26 Mithila Laghubitta Dhalkebar, Dhanusha Madhesh Province रु 19.60 Crore
27 NADEP Laghubitta Gajuri, Dhading National रु 48.58 Crore
28 National Laghubitta Nilkantha, Dhading National रु 133.16 Crore
29 Nerude Mirmire Laghubitta Banepa, Kavrepalanchowk National रु 139.78 Crore
30 NESDO Samridda Laghubitta Kushma, Parbat National रु 25.50 Crore
31 NIC Asia Laghubitta Banepa, Kavrepalanchowk National रु 173.94 Crore
32 Nirdhan Utthan Laghubitta Naxal, Kathmandu National रु 261.21 Crore
33 NMB Laghubitta Pokhara, Kaski National रु 72.14 Crore
34 RSDC Laghubitta Butwal, Rupandehi Wholesale Banking रु 94.44 Crore
35 Sampada Laghubitta Gorkha, Gorkha National रु 70.09 Crore
36 Samaj Laghubitta Malangawa, Sarlahi Madhesh Province रु 2.29 Crore
37 Samata Gharelu Laghubitta Banepa, Kavrepalanchowk National रु 59.91 Crore
38 Samudayik Laghubitta Banepa, Kavrepalanchowk National रु 17.08 Crore
39 Sana Kisan Bikas Laghubitta Babarmahal, Kathmandu Wholesale Banking रु 431.26 Crore
40 Shrinjansil Laghubitta Golbazar, Siraha National रु 10.94 Crore
41 Support Laghubitta Itahari, Sunsari Koshi Province रु 12.24 Crore
42 Suryodaya Womi Laghubitta Banepa, Kavrepalanchowk National रु 79.19 Crore
43 Swabalamban Laghubitta Kamalpokhari, Kathmandu National रु 165.66 Crore
44 Swabhiman Laghubitta Tilottama, Rupandehi Lumbini Province रु 14.61 Crore
45 Swastik Laghubitta Lahan, Siraha Madhesh Province रु 3.47 Crore
46 Sworojgar Laghubitta Banepa, Kavrepalanchowk National रु 69.06 Crore
47 Unique Nepal Laghubitta Kohalpur, Banke National रु 14.86 Crore
48 Unnati Sahakarya Laghubitta Siddharthanagar, Rupandehi National रु 24.69 Crore
49 Upakar Laghubitta Kohalpur, Banke Lumbini Province रु 10.61 Crore
50 Vijaya Laghubitta Gaidakot, Nawalparasi National रु 74.50 Crore
51 Wean Nepal Laghubitta Banepa, Kavrepalanchowk Bagmati Province रु 7.92 Crore
52 Super Laghubitta Bittiya Sanstha N/A N/A N/A

Capital Requirements of Microfinance Companies of Nepal

Microfinance Financial Institutions are the Class D type of Banks, to ensure their financial stability and protect depositors, NRB has established specific capital requirements for these institutions.

Minimum Paid-Up Capital Requirements

NRB mandates the following minimum paid-up capital for microfinance institutions:

  • National-Level MFIs: NPR 100 million

  • Regional-Level MFIs: NPR 60 million

  • District-Level MFIs: NPR 20 million

These capital thresholds are designed to ensure that MFIs have a solid financial foundation to support their operations and absorb potential losses.

Capital Adequacy Ratio (CAR)

In addition to the paid-up capital, MFIs must maintain a Capital Adequacy Ratio (CAR) of at least 15% of their risk-weighted assets. This ratio helps ensure that MFIs can withstand financial stress and continue to operate effectively.

By meeting these capital requirements, microfinance institutions in Nepal contribute to the overall health and stability of the country’s financial system.