Microcredit development banks are the microfinance banks in Nepal that are listed as ‘D’ type Financial Institutions in Nepal Rastra Bank. Altogether, there is a total of 90 Micro Credit Development Banks in which there are 4644 branches.
What is a Microcredit Development Bank in Nepal?
Micro Credit Development Banks are licensed by Nepal Rastra Bank in ‘Class D’. Micro Credit Development Banks in Nepal are also playing vital roles in the development of the economic status of Nepal. Nepal has many nationalized and private Micro Credit Development Banks. These are the microcredit Development Banks licensed by NRB in Nepal.
Microcredit Development Banks are regulated financial institutions with a specific social and economic mandate:
- Target Audience: Low-income individuals, women’s groups, small-scale farmers, and micro-entrepreneurs.
- Primary Service: Providing micro-loans without demanding traditional forms of collateral, often through group lending models.
- Goal: To alleviate poverty, empower women, and promote entrepreneurship at the grassroots level.
- Regulator: Nepal Rastra Bank (NRB)
All the details of MicroCredit Development Banks in Nepal based on name, year established head offices, and up capital are given below:
Updated List of ‘D’ Class Microcredit Development Banks in Nepal
List of Prominent Microcredit Development Banks
| Name of Microcredit Development Bank | Headquarters | Key Focus Areas |
|---|---|---|
| Nirdhan Utthan Bank Limited | Lalitpur | One of the oldest and largest, focusing on poverty alleviation. |
| Mahila Sahayatra Microfinance Bittiya Sanstha Limited | Kathmandu | Empowering women through financial services. |
| Deprosc Microfinance Development Bank Ltd. | Dhading | Extensive reach in rural and hilly regions. |
| Chhimek Laghubitta Bittiya Sanstha Ltd. | Lalitpur | A leading MDB with a wide network of branches. |
| Sana Kisan Bikas Bank Ltd. | Lalitpur | Focused on providing services to small farmers. |
| Mirmire Microfinance Development Bank Ltd. | Kathmandu | Known for its service in various parts of the country. |
| Laxmi Microfinance Bittiya Sanstha Ltd. | Pokhara | Strong presence in the Gandaki province. |
| Swabalamban Laghubitta Bittiya Sanstha Ltd. | Butwal | Active in the Lumbini province and surrounding areas. |
| Jeevan Bikas Laghubitta Bittiya Sanstha Ltd. | Damak | Significant operations in the eastern Terai. |
| Nagbeli Microfinance Laghubitta Bittiya Sanstha Ltd. | Nepalgunj | Focused on the Mid-Western and Far-Western regions. |
| Ganapati Microfinance Bittiya Sanstha Ltd. | Dhangadhi | Serving communities in the Sudurpashchim Province. |
| Manakamana Smart Laghubitta Bittiya Sanstha Ltd. | Narayangarh | Active in the Terai and hilly regions. |
| NIC ASIA Laghubitta Bittiya Sanstha Ltd. | Bharatpur | Promoted by NIC ASIA Bank, with a strong backing. |
| Swarojgar Laghubitta Bittiya Sanstha Ltd. | Biratnagar | Focused on creating self-employment opportunities. |
| Vijaya Laghubitta Bittiya Sanstha Ltd. | Butwal | Provides a range of microfinance products. |
Complete list of MicroCredits Development Banks
As of 2081 BS (2024 AD), numerous MDBs are operating across Nepal. The following table provides a clear list of prominent institutions.
This is the List of Microcredit Development Banks in Nepal ( class D banks in Nepal)
Note: The number of MDBs can change due to mergers and new licenses from NRB.
- Nirdhan Utthan Laghubitta Bittiya Sanstha Limited
- RMDC Laghubitta Bittiya Sanstha Limited
- Deprosc Laghubitta Bittiya Sanstha Limited
- Chhimek Laghubitta Bittiya Sanstha Limited
- Swabalamban Laghubitta Bittiya Sanstha Limited
- Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited
- Nerude Laghubitta Bittiya Sanstha Limited
- Naya Nepal Laghubitta Bittiya Sanstha Limited
- Mithila Laghubitta Bittiya Sanstha Ltd.
- Summit Laghubitta Bittiya Sanstha Ltd.
- Sworojagar Laghu Bitta Bika Bank Limited
- First Microfinance Laghubitta Bittiya Sanstha Limited
- Nagbeli Laghubitta Bittiya Sanstha Limited
- Kalika Microcredit Development Bank Limited
- Mirmire Microfinance Development Bank Limited
- Janautthan SamudayikMicrofinance Dev. Bank Limited
- Womi Microfinance Bittiya Sanstha Ltd.
- Laxmi Microfinance Bittiya Sanstha Ltd.
- Civil laghubitta Bittiya Sanstha
- Mahila Sahayatra Microfinance Bittiya Sanstha Ltd.
- Vijaya Laghubitta Bittiya Sanstha Ltd.
- Kisan Microfinance Bittiya Sanstha Ltd.
- NMB Microfinance Bittiya Sanstha Ltd
- FORWARD Community Microfinance Bittiya Sanstha Ltd.
- Global IME Laghubitta Bittiya Sanstha Limited
- Mahuli Samudyik Laghubitta Bittiya Sanstha Ltd.
- Suryodaya Laghubitta Bitiya Sanstha Ltd.
- Mero Microfinance Bittiya Sanatha Ltd.
- Samata Microfinance Bittiya Sanatha Ltd.
- RSDC Laghubitta Bitiya Sanstha Ltd.
- Samudayik Laghubitta Bitiya Sanstha Ltd.
- National Microfinance Bittiya Sanstha Ltd.
- Nepal Sewa Laghubitta Bitiya Sanstha Ltd.¤
- Unnati Microfinance Bittiya Sanstha Ltd.
- Swadeshi Lagubitta Bittiya Sanstha Ltd.
- NADEP Laghubitta Bittiya Sanstha Limited
- Support Microfinance Bittiya Sanstha imited
- Arambha Microfinance Bittiya Sanstha Limited
- Janasewi Laghubitta Bittiya Sanstha Limited
- Chautari Laghubitta Bittiya Sanstha Limited
- Ghodighoda Laghubitta Bittiya Sanstha Limited
- Asha Laghubitta Bittiya Sanstha Ltd
- Nepal Agro Microfinance Bittiya Sastha Ltd
- Gurans Laghubitta Bittiya Sanstha Ltd
- Ganapati Microfinance Bittiya Sastha Ltd
- Infinity Microfinance Bittiya Sanstha Ltd
- Adhikhola Laghubitta Bittiya Sanstha Ltd.
- Swabhiman Microfinance Bittiya Sanstha Ltd.
- Sparsha Laghubitta Bittiya Sanstha Ltd.
- Sabaiko Laghubitta Bittiya Sanstha Ltd
- Sadhana Laghubitta Bittiya Sanstha Ltd.
- NIC Asia Laghubitta Bittiya Sanstha Ltd.
- Sarathi Laghubitta Bittiya Sanstha Ltd.
- Trilok Laghubitta Bittiya Sanstha Ltd.
- Manakamana Laghubitta Bittiya Sanstha Ltd.
- Sahakarya Laghubitta Bittiya Sanstha Ltd.
- Sajeelo Laghu Bitta Bittiya Sanstha Ltd.
- Buddha Jyoti Laghubitta Bittiya Sanstha Ltd.
- Samaj Laghubitta Bittiya Sanstha Ltd.
- Divya Laghubitta Bittiya Sanstha Limited
- Cweda Laghubitta Bittiya Sanstha Limited
- Grameen Swayamsewak Laghubitta Bittiya Sanstha Limited
- Mahila Laghubitta Bittiya Sanstha Limited
- Adarsha Laghubitta Bittiya Sanstha Limited
- Unique Nepal Lagubitta Bittiya Sanstha Ltd.
- Manushi Laghubitta Bittiya Sanstha Limited
- Smart Laghubitta Bittiya Sanstha Limited
- Jalpa Laghubitta Bittiya Sanstha Limited
- Mahila Samudayik Laghubitta Bittiya Sanstha Limited
- Rastra Utthan Laghubitta Bittiya Sanstha Limited
- Solve Laghubitta Bittiya Sanstha Limited
- WEAN Laghubitta Bittiya Sanstha Limited
- Upakar Laghubitta Bittiya Sanstha Limited
- Dhaulagiri Laghubitta Bittiya Sanstha Limited
- CYC Nepal Laghubitta Bittiya Sanstha Limited
- NESDO Samriddha Laghubitta Bittiya Sanstha Limited
- Swastik Laghubitta Bittiya Sanstha Limited
- Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited
- Shrijanshil Laghubitta Bittiya Sanstha Limited
- NRN Laghubitta Bittiya Sanstha Limited
- Jiban Bikash Laghubitta Bittiya Sanstha Limited
- Gharelu Laghubitta Bittiya Sanstha Limited
- Janakpur Laghubitta Bittiya Sanstha Limited
- BPW Laghubitta Bittiya Sanstha Limited
- Aatmanirbhar Laghubitta Bittiya Sanstha Limited
- Shaligram Laghubitta Bittiya Sanstha Limited
- Super Laghubitta Bittiya Sanstha Limited
- Abhiyan Laghubitta Bittiya Sanstha Limited
- Deurali Laghubitta Bittiya Sanstha Limited
- Nawa Kiran Laghubitta Bittiya Sanstha Limited
How to Choose a Microcredit Development Bank?
Selecting the right MDB is crucial. Consider these factors:
- Area of Operation: Ensure the MDB has a branch or service center in your locality.
- Interest Rates: Compare the interest rates on loans and the returns on savings.
- Group Lending Requirements: Some MDBs primarily work with women’s groups (e.g., “Self-Help Groups”).
- Loan Products: Check if their loan products (e.g., agricultural, livestock, small business) match your needs.
- Transparency and Service: Look for an institution with a good reputation for transparent dealings and customer service.
- Digital Services: Many MDBs now offer mobile banking apps for easier transactions.
The Role of Microcredit in Nepal’s Economy
Microcredit Development Banks play a vital role by:
- Promoting Financial Inclusion: Bringing unbanked populations into the formal financial system.
- Women Empowerment: A significant majority of microfinance clients are women, giving them financial independence.
- Poverty Alleviation: By providing capital for small businesses, they help generate income and lift families out of poverty.
- Supporting Local Economies: Micro-loans fuel small-scale agriculture, retail shops, and local handicrafts.