Cooperative (Sahakari) Interest Rates in Nepal
The reference interest rate caps what a savings and credit cooperative can charge. Here is the current limit, the rules that come with it, and a quick check for your own cooperative.
- Maximum loan rate: 13%, effective Asoj 1, 2083 (mid-September 2026). It was 16% before.
- The gap between a cooperative's loan rate and savings rate cannot exceed 6 points. A cooperative lending at 13% must pay at least 7% on savings.
- Service, administrative, renewal and form fees are not allowed. The penalty is capped at 5% of unpaid interest.
- Deposit protection for cooperative savings is written into law but was not yet operating in mid-2026. A bank deposit is covered up to Rs 5 lakh.
Check your cooperative's rates
What the reference interest rate is
The reference interest rate (सन्दर्भ ब्याजदर) is the legal ceiling on cooperative loan rates. The Registrar of Cooperatives sets it on a committee's recommendation, under Section 51 of the Cooperative Act 2074. The current directive was signed on Bhadra 31, 2083 and cut the ceiling from 16% to 13% from Asoj 1, 2083.
| Rule in the current directive | Limit |
|---|---|
| Maximum loan interest rate | 13% |
| Gap between loan and savings rates | 6 percentage points at most |
| Service, administrative, renewal or form fees | Not allowed |
| Penalty on late payment | 5% of the unpaid interest at most |
| Adding unpaid interest to the principal | Not allowed |
| Rates for directors and staff | Same as for ordinary members |
| Publishing rates | Required |
Sources: Onlinekhabar, Asoj 1, 2083; Ratopati, 16 September 2026. The reports do not say whether the cut applies to loans already running; ask your cooperative.
Is there a savings rate limit?
There is no separate cap on what a cooperative pays savers. The spread rule does the work. If a cooperative lends at 13%, it must pay at least 7% on savings. If it wants to pay savers 6%, it cannot lend above 12%. Be careful with any cooperative offering savings rates far above banks: under these rules it cannot lend high enough to fund them.
How safe is money in a cooperative?
- No working deposit guarantee yet. Cover up to Rs 5 lakh is written into law, but it had not started operating as of May 2026. Bank and microfinance deposits are covered up to Rs 5 lakh.
- A new regulator is registering cooperatives. The National Cooperative Regulatory Authority had registered 11,677 of about 15,000 savings and credit cooperatives by Chaitra 17, 2082 (end of March 2026), and issued 1,834 operating permits (Kantipur). Ask your cooperative whether it holds one.
- Refunds from troubled cooperatives have begun. A revolving fund to return savers' money was set up in 2083, and payments to small depositors started in Jestha 2083 (Kantipur; DCNepal).
- Unsecured loans are limited. Standards prepared in 2025 cap a loan without collateral at Rs 5 lakh (Kantipur, April 2025).
Cooperative, microfinance or bank?
| Cooperative | Microfinance | Commercial bank | |
|---|---|---|---|
| Maximum loan rate | 13% | 13.70% this quarter | No cap; home and personal loans from about 5% to 9% |
| Regulator | Cooperative Regulatory Authority, Department of Cooperatives, local governments | Nepal Rastra Bank | Nepal Rastra Bank |
| Deposit guarantee | Not yet operating | Up to Rs 5 lakh | Up to Rs 5 lakh |
| Who can use it | Members only | Members; two institutions take public deposits | Anyone |
For savings you can lock away, compare fixed deposit rates at banks and finance companies. For borrowing, see microfinance rates and bank loan rates, and price any loan with the EMI calculator.
Frequently asked questions
What is the maximum interest rate a cooperative can charge in Nepal?
13% a year, effective Asoj 1, 2083 (mid-September 2026). The Registrar of Cooperatives cut it from 16%.
What is the reference interest rate (sandarbha byajdar)?
It is the ceiling on cooperative loan rates, set by the Registrar of Cooperatives under the Cooperative Act 2074. A cooperative may charge less, never more.
Can a cooperative charge a service fee on a loan?
No. The current directive bars service, administrative, renewal and form fees.
What interest should a cooperative pay on savings?
The gap between loan and savings rates cannot exceed 6 points. A cooperative lending at 13% must pay at least 7%.
Is my cooperative deposit insured?
Not yet. Cover up to Rs 5 lakh is provided for in law but was not operating as of mid-2026. Bank and microfinance deposits are covered up to Rs 5 lakh.
Byajdar is not a lender. These pages report published rules and figures. Confirm the rate in writing with the institution before you borrow or deposit, and see our methodology for how we check data.