Microfinance (Laghubitta) Interest Rates in Nepal
The most a microfinance institution can charge on a new loan this quarter, the base rate of every licensed laghubitta, and what they pay on savings.
- Maximum loan rate now: 13.70% for Kartik to Poush 2083. It was 14.10% from Baisakh 2083.
- The old flat 15% cap applies only to loans taken before Shrawan 1, 2082 (16 July 2025).
- A new loan can cost at most the lower of two limits: the institution's own base rate plus 3 points, or the commercial banks' average base rate plus 9 points.
- 40 of 48 retail institutions have a base rate high enough to charge the full ceiling. National Microfinance Laghubitta has the lowest retail base rate at 7.56%.
- Member savings typically earn 7.5% to 9.25% at the institutions whose notices we could read.
How the microfinance rate ceiling works
Until mid-July 2025, Nepal Rastra Bank capped every microfinance loan at a flat 15%. Since Shrawan 1, 2082, a new loan is priced from the institution's base rate, and two ceilings apply at once. The lower one wins.
| Limit | Formula | This quarter |
|---|---|---|
| Own base rate limit | The institution's three-month average base rate + up to 3 points | Varies by institution |
| Sector limit | Commercial banks' average base rate (4.70%) + 9 points | 13.70% |
Rates are reset every quarter, and the borrower chooses a fixed or a variable rate. Because bank base rates have fallen, the sector limit has dropped from 14.10% to 13.70% this quarter. Loans taken before Shrawan 1, 2082 stay under the 15% cap.
Sources: Sharesansar report on the NRB guideline, 11 July 2025; rate notices of Deprosc and NMB Laghubitta dated Ashwin 30, 2083, citing NRB Unified Directive 2082, directive 14.
Base rate of every microfinance institution
The base rate is the institution's own cost of funds plus running costs. A lower base rate means the institution can lend below the ceiling and still cover its costs. The "most it can charge" column applies the two limits above to the latest base rate NRB has published. Click a column heading to sort.
| Institution | Base rate | Most it can charge | Bad loans (NPL) | Loans (Rs crore) |
|---|---|---|---|---|
| Sana Kisan Laghubitta WHOLESALE | 3.68% | 6.68% | 2.96% | 3,695 |
| RSDC Laghubitta WHOLESALE | 5.52% | 8.52% | 3.92% | 442 |
| First Microfinance Laghubitta WHOLESALE | 6.48% | 9.48% | 2.88% | 484 |
| National Microfinance Laghubitta | 7.56% | 10.56% | 4.16% | 2,897 |
| Jeevan Bikas Laghubitta | 9.74% | 12.74% | 5.33% | 3,215 |
| Sworojgar Laghubitta | 10.24% | 13.24% | 6.65% | 1,090 |
| Aviyan Laghubitta | 10.29% | 13.29% | 7.41% | 359 |
| Samata Gharelu Laghubitta | 10.30% | 13.30% | 13.22% | 689 |
| Forward Laghubitta | 10.35% | 13.35% | 16.17% | 2,360 |
| Asha Laghubitta | 10.44% | 13.44% | 8.57% | 1,218 |
| NIC Asia Laghubitta | 10.61% | 13.61% | 12.40% | 2,215 |
| Deprosc Laghubitta | 10.74% | 13.70% | 6.49% | 2,765 |
| Swabhiman Laghubitta | 10.79% | 13.70% | 10.83% | 301 |
| Global IME Laghubitta | 10.87% | 13.70% | 8.70% | 1,107 |
| Wean Nepal Laghubitta | 11.05% | 13.70% | 16.12% | 84 |
| Mahila Laghubitta | 11.05% | 13.70% | 11.35% | 593 |
| Vijay Laghubitta | 11.15% | 13.70% | 17.37% | 1,024 |
| Sampada Laghubitta | 11.24% | 13.70% | 11.87% | 1,077 |
| Mahuli Laghubitta | 11.30% | 13.70% | 5.87% | 641 |
| Suryodaya Womi Laghubitta | 11.35% | 13.70% | 12.58% | 1,292 |
| Gurans Laghubitta | 11.40% | 13.70% | 2.96% | 225 |
| Mithila Laghubitta | 11.47% | 13.70% | 9.89% | 310 |
| Upakar Laghubitta | 11.59% | 13.70% | 9.97% | 251 |
| Chhimek Laghubitta PUBLIC DEPOSITS | 11.62% | 13.70% | 2.30% | 4,695 |
| NADEP Laghubitta | 11.62% | 13.70% | 15.36% | 652 |
| Swastik Laghubitta | 11.65% | 13.70% | 23.58% | 72 |
| Himalayan Laghubitta | 11.70% | 13.70% | 9.04% | 504 |
| Mero Laghubitta | 11.79% | 13.70% | 17.32% | 1,611 |
| Support Laghubitta | 11.91% | 13.70% | 2.16% | 221 |
| Shrijanshil Laghubitta | 11.93% | 13.70% | 11.26% | 306 |
| Ganapati Laghubitta | 11.97% | 13.70% | 13.79% | 236 |
| Swabalamban Laghubitta | 12.00% | 13.70% | 8.92% | 2,790 |
| Infinity Laghubitta | 12.05% | 13.70% | 12.92% | 602 |
| Nerude Mirmire Laghubitta | 12.12% | 13.70% | 19.86% | 2,071 |
| Matribhumi Laghubitta | 12.23% | 13.70% | 26.61% | 1,190 |
| NMB Laghubitta | 12.30% | 13.70% | 13.10% | 902 |
| Kalika Laghubitta | 12.40% | 13.70% | 9.78% | 554 |
| Nirdhan Utthan Laghubitta PUBLIC DEPOSITS | 12.46% | 13.70% | 12.80% | 2,926 |
| CYC Nepal Laghubitta | 12.48% | 13.70% | 14.04% | 678 |
| Jana Utthan Laghubitta | 12.49% | 13.70% | 17.14% | 222 |
| Unnati Sahakarya Laghubitta | 12.82% | 13.70% | 9.39% | 403 |
| Aarambha Chautari Laghubitta | 12.85% | 13.70% | 6.01% | 561 |
| Unique Nepal Laghubitta | 13.13% | 13.70% | 19.43% | 409 |
| Gramin Bikas Laghubitta | 13.75% | 13.70% | 4.87% | 1,583 |
| Laxmi Laghubitta | 13.99% | 13.70% | 11.93% | 640 |
| Samudayik Laghubitta | 14.04% | 13.70% | 4.89% | 206 |
| Dhaulagiri Laghubitta | 14.15% | 13.70% | 20.52% | 211 |
| Manushi Laghubitta | 14.27% | 13.70% | 8.60% | 168 |
| Aatmanirbhar Laghubitta | 14.31% | 13.70% | 10.78% | 188 |
| Nesdo Samriddha Laghubitta | 18.13% | 13.70% | 20.66% | 416 |
| Sanjeevani Laghubitta | 28.22% | 13.70% | 100.00% | 47 |
Source: NRB Key Financial Indicators of Microfinance Institutions, Asar-end 2083 (provisional). The ceiling column is our calculation from that base rate; institutions set their actual rate from a three-month average, so the figure on your loan paper can differ slightly. Wholesale institutions lend to other microfinance institutions and cooperatives, not to individuals.
Rates published by the institutions
These are the rates we could read on each institution's own notice for the current quarter. Most others publish a scanned notice at the branch or on their site.
| Institution | Loan rate | Savings rate | Effective | Notice |
|---|---|---|---|---|
| Swabalamban Laghubitta | 13.70% without collateral; 13.50% fixed with collateral | Not on the rate page | Kartik 1 to Poush end, 2083 | Source |
| Deprosc Laghubitta | 13.70% | 7.50% general; 8.00% to 9.25% long-term | From Kartik 1, 2083 | Source |
| NMB Laghubitta | 13.70% on all products | 7.50%; 8.00% child; 8.50% gratuity | From Kartik 1, 2083 | Source |
| Sana Kisan Laghubitta (wholesale) | 6.46% variable; 7.30% fixed | 3.65% | Kartik 1 to Poush end, 2083 | Source |
Loan limits and other rules
- Collateral-backed loans: up to Rs 15 lakh per borrower. NRB raised this back from Rs 7 lakh in late 2025 (Kantipur, 1 December 2025).
- Penalty interest: 2% a year on the overdue instalment only, per the institutions' current notices.
- Service charge: reported at a maximum of 1.3% of the approved loan in early 2025. Ask for the current figure in writing.
- Public deposits: only Nirdhan Utthan and Chhimek may take deposits from the general public. All others take savings only from their own members.
Microfinance or a bank loan?
A microfinance loan needs little or no collateral and reaches villages banks do not. It also costs roughly twice as much. Commercial banks currently quote home and personal loans from about 5% to 9%. If you have land or a salary account, compare personal loan rates and home loan rates at banks first, and use the EMI calculator to see the difference in rupees.
Frequently asked questions
What is the maximum interest rate a microfinance can charge in Nepal?
For Kartik to Poush 2083, the ceiling on a new loan is 13.70%. An institution with a low base rate must charge less, because its rate cannot exceed its own base rate plus 3 points.
Is the 15% microfinance cap still in force?
Only for loans taken before Shrawan 1, 2082 (16 July 2025). Loans issued after that date follow the base-rate formula, which currently gives a lower ceiling.
How many microfinance institutions are there in Nepal?
NRB listed 51 Class D institutions at Asar-end 2083 (mid-July 2026), and 50 in its mid-September 2026 list, after a merger.
What interest do microfinance institutions pay on savings?
The current notices we could read show 7.5% on general member savings and up to 9.25% on long-term savings. There is no NRB minimum; each institution must disclose its rate in writing.
How much can I borrow from a microfinance?
Up to Rs 15 lakh against collateral. The limit without collateral is lower and depends on your group and repayment record; ask the branch for the current figure.
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.